Hi
say if im backtesting a FX pair, and theres x amount of trades using such and such signals.
they are all at diff times of day, as its 24hour market.
so say even if i find a 80% success rate with back data,
in order to forward test it properly and use the system,
its not really possible as we dont watch market ALL the time.
So should we backtest ONLY during the specific market hours which we are likely to trade in the future?
eg say if ill be awake 9am to 5pm trading, should i only backtest using data between 9 to 5 on previous days (FX)
i understand we should take the trade 100% of time, if not, system is not being followed.....
so if a trade at 3am is missed, the system is not being followed consistantly even when the next day time trade is taken.
do you get me_what do you think?
thankyou
say if im backtesting a FX pair, and theres x amount of trades using such and such signals.
they are all at diff times of day, as its 24hour market.
so say even if i find a 80% success rate with back data,
in order to forward test it properly and use the system,
its not really possible as we dont watch market ALL the time.
So should we backtest ONLY during the specific market hours which we are likely to trade in the future?
eg say if ill be awake 9am to 5pm trading, should i only backtest using data between 9 to 5 on previous days (FX)
i understand we should take the trade 100% of time, if not, system is not being followed.....
so if a trade at 3am is missed, the system is not being followed consistantly even when the next day time trade is taken.
do you get me_what do you think?
thankyou
