Back testing is the process of using old chart data to test if trading a system or pattern will generate a profit over time.
In this webcast Warren will do a live session using a chart and test it using the system below;
- Typically 15 minute chart, but has been used on hourly or end of day
- 7 and 21 SMA’s on Top40 trading ALSI futures
- 7 up through 21 = trigger. Next candle that closes higher = entry if 7 still above 21
- Stop is candle close below 7, some use close below 21