Hello everyone!
I hope you have had a great trading week.
I myself have spent the week only backtesting as I am trying out a new system, gathering data to see if it’s worth trading in the live markets.
I’ve been doing this testing for a few weeks prior to the launch of Meteor Trading and plan to get 3 years of data (2023-2025).
I am currently in March 2023, so a fair way to go but I’ll keep chipping away at it!
The stats currently seem very positive, however, I only have around 30 trades logged so far so I 100% need to gather more data before I can confirm that this will be a viable strategy. This is because 30 trades isn’t enough to judge a system, most pros recommend at least 100-200 before you trust the numbers.
Results measured in R (R=% gained).
This system is built based on everything I have been taught at Photon. The entry model is my own but it’s only taken concepts from Photon and applied them to help me find an execution style that suits me.
Mindset
Backtesting is a tricky endeavour and requires a lot of discipline to go through in order to get decent data to measure your edge/theorised performance.
I try to aim for a week’s worth of data per day but that just about surpasses my goldilocks zone for effort, touching into the more difficult side of things.
I could of course tone it down and aim for 3 days but I know what I can achieve in a decent space of time so I try and strive for a week’s worth of data as a maximum. That being said, I don’t punish or criticize myself for not achieving a week’s worth of data, I am happy even if I achieve 1 day of testing as it’s still progress.
This week, I achieved 3 days of going to my max and the other 2 were 1-2 days tested, so I am happy.
Progress compounds, even in small doses. A single day of testing is still a brick in the wall.
Trading Corner
The main tool I used this week was FXReplay, this is because it’s the best platform I personally have come across to get backtesting done, mainly due to the ability to go back years in time and move the candles forward to test me and my edge.
You can do this on TradingView but you will likely end up paying quite a bit in subscription fees, so it’s much more cost effective to have a lower subscription on TradingView (for your live trading) and pay for FXReplay.
If you’re serious about building an edge, FXReplay is the best $/month you can spend, FXReplay will also log your trades with a clear dashboard of your current performance.
I highly recommend that you check it out because backtesting is great for improving pretty much all of your trading skills, especially for mark-ups and gathering data for your edge (which can be very beneficial when it comes to trading in the live markets).
Key Takeaway for the week
This week proves that no matter how much effort you put in, loads or a little, you will still make progress.
Everyone gets so hung up on making progress as soon and as fast as possible but no one talks about being patient and just improving 0.01% a day. Sure it will take you a while to achieve your goal but you’re still on the right path.
Trust the process.
If you enjoyed this weekly breakdown, share it with another trader who’s stuck on the backtesting grind. Progress is easier when you’re not alone.
If you want to try the tools & course I’ve mentioned for yourself (including a discount code for FXReplay), here are the links:
