As a general question, I want to know how much time I need to test out a trading strategy. Is one month good enough or I should test out my trades for entire year on demo account? I basically want to see how my trade set ups work in as many market conditions as possible. Anyone hear can give me feedback? Thanks
What is adequate amount of time to test out a trading strategy?
- Thread starter panzerss
- Start date
panchovilla84
Recruit
- Messages
- 1
if you're talking about backtesting, dont confuse time with sample size.
For example if you can backtest 30 years of data in 5 minutes, do you really need to spend anymore time on backtesting? if you are talking about forward testing, then 6 months to a year is probably the average.
For example if you can backtest 30 years of data in 5 minutes, do you really need to spend anymore time on backtesting? if you are talking about forward testing, then 6 months to a year is probably the average.
Ethan.ishere
Private, 1st Class
- Messages
- 41
You want to try it out, open as many positions as you can, cover all the different conditions of the market in the past, and I would say that there no actual set time that it takes for everybody. It depends on a whole lot so mostly it's on you and how fast you get the hang of things, give it a lot of time though if you are serious about it.
I think it can vary greatly from person to person. The testing period should last as long as it takes for you to gain the confidence to make decisions without letting emotions control you.
NatureGirl
Corporal
- Messages
- 100
at least one year
VasilTodorov
Private, 1st Class
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- 64
it is not about the time it is about the number of trades. for example if that is a scalping it can be done in 2 or 3 days, or a week maximally. i would trade 100 times and check the result.
