Back Testing

[msk185]

Hi
I'm sure I saw a post on this some time ago but cant find it now. Does anyone know of any software addon for MT4 that allows you to recreate the chart from the historical data so that you can simulate the live trading picture for back testing?

Moving the bars to the right of the screen and using F12 is okay, but you can't see the picture of the alligator in the future so its not a clean image of what it would look like in real life.

Thanks in advance

Mike

[chris2var]

Hi Mike,

I got something from forex factory forum, it was in the business? professional section, something like that I think.

I've looked at the manual that comes with it and it's by Mark from LearnForexHome.com

Hope thats of some help and it's free by the way, which is always nice

Chris

[Topher]

Chris

I believe you are referring to LFH Trade Simulator. Have you used this for backtesting Aims? I have been using it however, you can only test one timeframe at a time. The only way I have found to look at M1 and M5 at the same time is to have two separate versions of MT4 running one with M1 and the 2nd with M5. It is time consuming and a bit messy.

If anyone has any better way of back testing I would love to hear. I realise the best method of learning this is to actually do it, however, I want to hone my trading and also do some accelerated learning on H1 & H4 and try to come up with some robust settings.

Richard

[immy]

Chris

I believe you are referring to LFH Trade Simulator. Have you used this for backtesting Aims? I have been using it however, you can only test one timeframe at a time. The only way I have found to look at M1 and M5 at the same time is to have two separate versions of MT4 running one with M1 and the 2nd with M5. It is time consuming and a bit messy.

If anyone has any better way of back testing I would love to hear. I realise the best method of learning this is to actually do it, however, I want to hone my trading and also do some accelerated learning on H1 & H4 and try to come up with some robust settings.

Richard

Hi

The best of all back testing is "Forward Testing". I suggest everyone to do nothing but watch the charts for a week and make notes, take pictures etc as the setup develops. Then using the notes and pics ask questions etc in the forum. Then next step start trading those setups on a demo account. Keep demo trading until you have doubled your account using correct money management. (not htat you put a 100lot trade and double your account (rofl) )
step 3. start a live account and start trading risking only .25% or even .1% of your capital/account balance. I also suggest that if you're planing ot invest 10K, then put only 5K in to brokers account and use .25% or (when you're read 1%) of the 5K and not the whole 1K. This way you will trade with confidence knowing that a few mistakes here and there will not destroy your account.

cheers

Immy

[chris2var]

Yes that's it the LHF, I've used it for AIMS, though obviously as Immy states it's better to do real time.

As you don't get the 5m chart along side it (or any combo of 2 time frames), for the best of a bad job you can add the other time frame MA's (which we are already doing with one of them, ie the purple) with a simple multiplier ie the blue is 13 +8 so this would become (on a 5m from a one min chart) 65 +40 and make this a blue dotted line . Do the same for the others remembering they are (H+L/2) and smoothed.

Regarding the AO, thats more of a problem, best bet is to write it yourself or edit the code of a written one using the same multiplier' s as above.

Worse that that is the fact of how much chart area you are losing with three separate windows and running the strategy tester.

Best of luck with it

Chris

[Topher]

Chris

I got round the problem by running LHF on two separate MT4 accounts. One set to M1 and the other to M5. As we are only getting a handful of setups a day it is not much of an issue to scan through the two charts that I have runnimng side by side.

Today I have sat for 11 hours staring at the screen trading live. In the same time backtesting I can do a several years worth. I know there is no substitute for the real thing, however, testing this way has improved my trading no end. I am up over 40% this month alone and most of that is due to getting the confidence of this system through back testing.

Richard

[chris2var]

Thanks Richard,

I'll give that a try, do you just start LHF at the same time on both and do they keep sync if set to the same value?

Though I think I'd have to get a second monitor to be able to see it well enough, or maybe a wide screen monitor may do it better. Any suggestions?

Thanks again

Chris

[Topher]

Chris I simply start the M1 MT4 when a potentialsetup comes along I pause LHF. Go to the 5min MT4 start that until the correct M5 candle is visible. I then pause that and look for a potential setup. It is a lot simpler than it sounds.

Richard

[chris2var]

Thanks Richard I'll have a go at that.

Chris