Forex Robot Trading - Does Back Testing Help Or Hinder?
Do the results of back testing mirror the forward testing results.
Certainly the back tested results put forward by the more unscrupulous purveyors of Forex Robot Trading schemes are to be lightly dismissed. It is easy to adjust the trading parameters retrospectively to suit the result.
This is not what I am referring to here in my title, although it could be the subject of another article.
What I am referring to is the work that we may conduct of a Forex Robot that we have purchased.
We conduct a back test, back a week, month or year. We are feeling comfortable with what we see, and we feel excited with what the future holds.
But, we remain cautious about whether the program will perform in this manner going forward in live trades, we remain wary to let it run with the high number of lots that we back tested with.
It is a rational concern; after all we have all heard and read the hyperbole about back testing is not to be compared with forward results.
Ok, what is the truth here?
Back testing does not have to deal with good or bad news emanating from the USA primarily about the state of the economy, this is true, which can sometimes throw the markets it a tailspin.
What I have found is that the back testing of Metatrader, whereas it is not the ideal medium, it is reasonably indicative of the results going forward.
If, it has some downfalls, so be it, I still find it to be a great assistance. I have not noticed any great differences between back testing and forward results.
If the back testing is showing results that you are comfortable with, then go live.
Start conservatively, with a reduced number of lots, and evaluate the results on a 24 hour basis.
My other articles on Forex Robot Trading can be found on my website which helps to solidify the comments that I have placed here.
Please feel free to read them, as they expand of issues that I raised in this article.
It is exciting to watch a Robot make the trades without your constant concentration of the computer screen.
I am firmly convinced of the viability of Forex Robot Trading, and will continue to trade in this manner.
Please visit my website for further comment and updates re. The subject of Forex Robot Trading.