Backtesting guide
How to backtest a forex strategy
A useful backtest begins before the Run button. Write the rule, choose a comparison, include costs, separate development data from confirmation data, and inspect the trades that produced the summary.
1. Write one testable rule
Replace words such as ‘strong trend’ with a price, indicator or time condition that another person can reproduce.
2. Fix the market and dates
Choose the pair, timeframe and date range before seeing the result. Keep a later period untouched for confirmation.
3. Include costs and trade count
A high-frequency rule can look profitable before spread. Always show net pips and the number of trades beside win rate.
4. Compare a control
Test the default against nearby values or a simpler rule. Something always finishes first when there is no control.
5. Replay the trades
Open winners and losers on the chart. This catches fill assumptions and conditions that the summary table hides.
6. Confirm, do not optimize again
Run the chosen rule on untouched dates or another pair. If you tune again, it is development data again.
Practical guides
Concrete examples of building rules, logging practice and choosing a tool.
- You Don't Need to Code to Backtest a StrategyBacktesting used to mean writing scripts. It doesn't anymore. Here's how dropdown-based strategy builders work, what they're good at, and where they fall short.
- I Spent Years Looking for a Free Forex Tester. What I Learned.Most free forex testers are crippled trials. After years of searching, here is what actually matters in a practice tool, and how a browser-based one surprised me.
- What I Learned From 1,000 Replay TradesAfter a thousand simulated forex trades in replay mode, here are the patterns, mistakes, and mindset shifts that actually moved the needle.
- Can You Actually Practice Forex on an iPhone for Free?I tested what it's like to practice forex on an iPhone without paying anything. What works, what doesn't, and whether a phone-sized chart is worth your time.