March 18th, 2010

Testing a Forex Strategy

Posted in Finance

Testing a forex system isn’t as straightforward as making some trades. In order to totally test it, you want to run three tests – back, forward and live. As an example, if you wished to test the Forex Spectrum program, you’d run a test with historic info (back testing). It might show you the way the system would have performed had it run for a period of time. Then you’d run it on demo account to discover how it performs with real time info. And last though not least is the live testing, that is running the system on live account. It’s different from forward testing because there are additional factors that aren’t present in demo accounts, such as slippage, delays, spread and other variables.