? When you buy something through one of the links on our site, we may earn an affiliate commission. In this tutorial, I'll show you how to use the backtesting function in TradingView and give you the benefits and downsides of this platform, based on my personal experience. This powerful tool allows traders to test the effectiveness of any trading strategy, whether it's one they have developed themselves, or one created by a member of the TradingView Community. Key Takeaways TradingView's backtesting function allows traders to quickly test a wide selection of trading strategies across a huge ..read more

Closing part of a trade in MT4 isn't as obvious as it should be. So in this tutorial, I'll show you exactly how to do it. The process is not hard and once you know how it works, you can take partial profits on your trades at any time. First, let's take a look at why you might want to do this. Why Traders Take Partial Profits The biggest reason traders close part of their trades early is to take some of their profits off the table, while still allowing themselves up to potentially capture bigger profits later. This can give you a huge psychological boost and allow you to stick with the rest of ..read more

“Well duh, a good backtesting results is when you make 1,000,000% return.” That's what many new traders think and that's why over 90% of traders fail. If you want to become a successful trader, you're going to have to learn how properly evaluate a trading strategy and adjust your perception of what is a good backtesting result.  Spoiler alert: Most successful trading strategies start off as mediocre or even poor.  But through continual testing and iteration, they are made into profitable strategies. Just like successful traders are made, not born…successful strategies require an inv ..read more

Backtesting multiple markets at the same time has several benefits. The short version is that you'll save time and you can test based on market correlations. This process will be similar to backtesting multiple timeframes at the same time, but will require a couple of additional setups. Backtesting multiple markets is easy with an automated strategy. Just run the trading program against data from different markets. But viewing multiple markets at the same time is not as easy with manual testing. In this quick tutorial I'll give you the benefits and downsides of manual multiple market backtest ..read more

The 50-200 Moving Average Crossover is an easy concept to build a trading strategy around because the inputs are simple and the potential optimizations are straightforward. So it's perfect if you're just getting started with trading strategy development. Many trading websites will give you what they say is the “best” 50-200 crossover strategy. Interestingly, most of them don't give you any data to back up that claim. I'm going to give you information that's much more useful. In this tutorial, I'm going to show you how to backtest any Moving Average Crossover trading strategy on the internet t ..read more

In a previous article, I showed you how to create a fully automated 50-200 moving average crossover trading strategy, without coding. Now I'm going to show you the backtesting results of that strategy for every market that I've tested. I'll show you both the good and bad. You have to backtest this strategy yourself to make sure that you're comfortable with it and that it actually works with your broker. Even if a strategy doesn't work well, you can test ideas on how to improve it and make it much more profitable. Now let's move on to the trading plan and the results for each market. Remember ..read more

Easy Forex Builder (EFB) is a no-code, online tool for building automated Forex trading strategies. Once a strategy is built in this software, it can be exported to MetaTrader or Forex Tester for backtesting or even live trading. I reviewed EFB when it first came out and I was not impressed. It was not able to create complex trading strategies and it was clunky to have to export a strategy from EFB, import it into MetaTrader, then backtest it. So if you've come to the same conclusion as me about EFB, then here are some alternatives that can make the strategy building process much easier. I wi ..read more

In this tutorial, I'll show you how I backtest multiple timeframes at the same time. You'll learn how to setup multiple charts and have them all run at the same speed while you backtest. This is easy to do. There are many software solutions that can do it, but it may not be obvious how to do it, if you don't know what to look for. Here's what it looks like on my laptop. As you can see, I have the Daily, 4-hour, 1-hour and Weekly charts open. Having multiple charts running at the same time has many advantages, which you'll learn about in this tutorial. If you want to learn more about backtest ..read more

When you're testing trading strategies to gauge their profit potential, backtesting is a crucial step. But it's not enough to just stop at the total return of a strategy in backtesting. There are many metrics that should be studied to assess the viability of a strategy, and if it will meet your goals. A Monte Carlo simulation is a mathematical technique that can be used to stress test a trading strategy. It runs backtesting results through hundreds, or even thousands of possible scenarios, which helps traders uncover weaknesses and potential issues.  I've found Monte Carlo simulations ve ..read more

In trading, backtesting and forward testing are essential methods for evaluating the potential success of trading strategies. Backtesting allows traders to assess how a strategy would have performed in the past by simulating trades with historical data. Unlike backtesting, forward testing involves trading a strategy in real-time with live data in a demo account, without risking real money. These often seem like optional steps to newer traders, or an either/or scenario. But in this article, I'll show you why they are both necessary in the development of trading strategies and cannot be skipped ..read more