Forex center
 
Forex center
History
Overview
Forex for Beginners
Dollar-Euro
Famous People
Forex Books
Glossary
Currency Converter
Fx Software
Fundamental Analysis
Technical Analysis
Economic Calendar
Bank Researches
Forex Courses
Psychology
Forex Brokers

Customer Service:
clients@forexcenter.com

Advertisments:


Easy Forex
Historical Tests
Historical tests provide traders with a rich investigative outline for establishing a system's capacity to manage the issues that influence risk. A historical test traces the performance of a particular trading system over time. The better systems utilize several years of tic data and use it in an actual re-enactment with real-life trading restrictions, thereby devising an optimum means for the trader to duplicate the results in a real-time, real-money account.

A first-rate historical test offers a wealth of information that must be analyzed by the trader in order to recognize patterns that can be used to his best advantage in favorable tests. The most effective metrics are net pips, maximum drawdown, consecutive losses, and success rate. These provide the trader with enough information to make a quick decision as to the system's merit. If the system is clearly bad, another can be selected. If the system is good or has definite possibilities, further examination is required.

The figures from a back test are an expedient way to measure a system's worth, but it is better to study the trades themselves. By studying each trade, the trader can see what occurred, even with just a few data points. A means of system optimization can be worked out utilizing this data and the metrics from the test.

Sometimes the means of best utilizing a system are fairly obvious, such as adjusting a stop, changing an exit signal, or changing the entry schedule. Others are a bit more complex, which is where an automated system proves itself to be of enormous use. For example, an automated tool called a Back Test Multiplier takes a variety of different engines, breaks them down into their constituent parts, then recombines them into several more engines. This technique creates systems that the trader otherwise would not have the time or personal knowledge to discover or exploit.

Once a system has been produced and customized via historical tests, it requires a period of live testing. Only use a system to trade a real account after confirming the conditions forecast by the historical test.
08, October 2006
The New Oil Boom
Searching for an investment opportunity that involves oil alternatives is a logical move, but recent studies have shown there are other oil opportunities that could prove to be highly profitable.
24, September 2006
US Congress Approves Oman Trade Pact
In a 63 to 31 vote, the United States Senate put its seal of approval on a free trade agreement with the Arabian Gulf state of Oman.
Easy Forex
Symbol Rate
GBP:CHF 2.007608
GBP:JPY 182.222212
GBP:USD 1.757198
NZD:USD 0.658397
EUR:CAD 1.503413
EUR:CHF 1.557680
EUR:GBP 0.775889
EUR:JPY 141.384148
EUR:USD 1.363390
AUD:JPY 80.415028
AUD:USD 0.775455
USD:CAD 1.102702
USD:CHF 1.142505
USD:JPY 103.700427
USD:SEK 7.185028

Disclimer: This website is for informational purposes only and is not intended to provide
specific commercial, financial, investment, accounting, tax, or legal advice.

© ForexCenter.com, 2005, All Rights Reserved