What is Back Testing in Forex

What is Back Testing in Forex

Backtesting is the process of testing prior time periods for a trading strategy. Instead of applying a strategy for the period ahead that could take years, a trader can do a simulation of his or her trading strategy on relevant past data to gauge his or her efficacy. When you backtest a theory, the results obtained are highly dependent on the moves of the period tested. Backtesting a theory assumes the future will be what happens in the past.

While most of it is performed using machines, you can execute it on a list of monthly or yearly data manually. It is a simple and straightforward approach which makes it very popular as an exciting and safe tool in the eternal search for the perfect forex strategy in the trader community. Traders who use this approach to test their trading plans hold to the assumption that what succeeds in the past will work for the future as well.

The most common testing technique among technical traders is backtesting of technical methods in light of past values. A basic principle of technical analysis is that price patterns reproduce themselves. By taking this theory to mean that a trading strategy’s past performance will guarantee or at least support its returns in future markets, backtesting aims at weeding out the less efficient resources and screening out the most successful strategy to be used in trading. But while it is common, the unpredictable, and continuously shifting nature of the markets makes backtesting a questionable method.

Not only does the quote change but also the laws that describe the quote change, meaning that a procedure that is valid today may not be so effective after a short period has passed. When we backtest a technique, what we test is its success in situations that might never be replicated again. Of course, there are still circles, pennants, breakouts, but the exact arrangement of one of these shapes is sufficiently different to invalidate the validity of previous trading choices in each and every other event.

Do you want to become Success Forex Trader?

The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading
Forex Trading Tips You Must Follow

Forex Trading Tips You Must Follow

Becoming a professional Forex trader is the result of being a successful trader in the first place and building up your trading account with the following tips and trading skills over time. It will take time and commitment on your part to become a good forex trader and you will certainly encounter some ups and downs along the way. You shouldn’t be discouraged, though, because the sooner you embrace this fact, the better you can get on the road to becoming a skilled trader of currency.

A Forex trading plan will also help you better evaluate the competition and then apply your experience to your trading strategy. A Forex strategy will prevent you from making rash, premature decisions-something that is especially useful when the emotions begin to come into play. They stop you from making foolish mistakes and allow you to measure your wins and losses.

Some Trading Tips You Must Follow:

1. Not every day is Trading Day
2. Always wait for Opportunity
3. Patience is the Key
4. Never Entered Early
5. Don’t Close Early (Depend)
5. Always wait for confirmation on 15/30m or 1H
6. Good Risk Management
7. Never Trade without SL
8. Trade with Trend on Supply & Demand base

Always stick to your trading plan and you must follow your rules mentioned above to become a successful trader from beginner.

Do you want to become Success Forex Trader?

The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading
Opportunities in the Forex Trading Market

Opportunities in the Forex Trading Market

Forex trading is one of the most profitable options for someone who is looking for bigger opportunities, high profit, and greater ease in trading and business. Because of its high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and trading. While it is traditionally for companies and corporations, it has also proven its self to be a good venture for retail traders too.

Since the forex market is so big it’s incredibly liquid as well. It is an advantage because it means you can quickly buy and sell at will in normal market conditions with a click of a button because there will normally be someone on the market ready to take the other side of your trade. You never get “stuck” in a market. You can also set up your online trading platform to automatically close your position once you have exceeded your target amount of profit and/or close a trade if a trade goes against you (a stop-loss order).

Perhaps you would think it would cost a lot of money to start out as a currency trader. The truth is, relative to bonds, options, or futures trading, it doesn’t. Online forex brokers providing trading accounts with “mini” amounts of some with a minimum deposit of 10$ or $100. Every investor wants to learn about profit opportunities and the currency market has plenty of that. In the currency market, you can make money if the currencies go up or down.

Forex provides the opportunity for its traders to trade around the clock. The supply and demand for currencies are available 24 hours a day, nearly five days a week. In other words, the market allows you to trade at your convenience and to respond to any breaking news on the market immediately. So whether you’re working during the daytime, going to school at night, or just wanting to get up early, you can find time to trade currency. However, various currencies are more involved during the day at different times, and if you have time, something is bound to happen that you can take advantage of.

Do you want to become Success Forex Trader?

The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading
Forex Trading with the Right Psychology

Forex Trading with the Right Psychology

Psychology, Scientists have begun to believe in recent years that emotion plays a significant part in risk assessment and decision-making. We are told that forex traders are trained to quickly and reliably evaluate risk and information, and often have large financial incentives riding on their decisions which should cut back on bouts of non-rational behavior. Even so, earlier studies have suggested that many successful traders base intuition and feelings on their trades.

The forex market is an intensely competitive environment, with traders continually facing obstacles that will test the limits of their psychology and the ability to balance the need to preserve capital over exploiting previously established trends. In addition to gaining the basic knowledge of the structure of the Forex market,  the ability to recognize patterns over a long period of time, and the ability to manage risks, the market has built up the challenges of individual and crowd psychology that a trader must learn to contend with as he progresses from beginner to expert.

You need to continue studying and learning in trading. Since markets are constantly on the move, one needs to aim for market behavior to be present. You are going to recognize patterns that repeat themselves. In fact, as they do, the skilled trader can move quickly to use them as an opportunity to make a profit. You’ll also know that trends struggle to follow through sometimes. One key measure of trading excellence is how well the trader reacts to failed patterns. One of the beginner trader’s first aims should be to develop a solid “feel” for market movement with hard work, dedication, endurance, and discipline, this “look” is acquired

Trading income has nothing to do with your system, trading equipment, or speed on the internet. It comes down to you being able to take full responsibility for the performance of your trade. Accept the fact that the market is giving you what you want to get. Would you believe in the idea of probabilities and you don’t have to be right about every business? The quest to find and live in the trade zone never ends so try to have fun along the way.

Do you want to become Success Forex Trader?

The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading
Forex Scalping Strategy Supply and Demand Trading

Forex Scalping Strategy Supply and Demand Trading

When it comes to forex scalping trading, generally refers to making a large number of trades which individually produce good profits. In the forex trading market, scalping means exchanging currencies based on a collection of real time data. The object of scalping is to make a profit by buying or selling currencies and holding the trade positions for a very short time, for a small profit, and closing it. Typically these types of trades are only kept on for a few minutes.

The key aim for the forex scalpers is to catch small amounts of pips as many times as they can do in a day. Since Forex scalpers have to be practically glued to the charts, it’s better suited for those who can spend several hours of undivided attention on their trade. For it to be effective it needs intense concentration and quick thinking. Whereas a day trader may try to take up a position once or twice, or even a few times a day, scalpers are far more frenetic and attempt several times in a session to skim down small profits.

Scalpers are looking to enter the market, and hopefully exit positions before the session close of the market. Scalpers usually employ technical trading techniques using short-term  on supply and demand base. While typically basics don’t contribute to a scalpers trading strategy, it’s important to keep an eye on the economic calendar as well to see when news can increase the volatility of the market.

The Forex Scalper teach you best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and perform daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading
How to Find Best Zones in Supply and Demand Trading

How to Find Best Zones in Supply and Demand Trading

Finding supply and demand  Zones Structure is the basis for the trade-in supply and demand. As markets move dramatic rises and falls, orders usually issued by large institutional and investors. They put pending orders at the base of the liquidity zones to buy or sell, with the hope that the market will return to fill the remaining orders. The demand zone is a high price increase zone and the supply zone is the one where the price made a sharp decline.

In the below pictures you can see the bearish structure change to bullish structure this is because of the strong demand zone and as you can see on the lower time frame the price is rejected much time it mean the seller is getting weaker while the buyer has more potential on the market. so the price will go higher to the next supply zone which is mention in the below picture.

The price gets confirmed by a strong bull after the many rejections and the price move rapidly and price break over the zone and the whole momentum change to the buyer. You need to close the order when the price is entered into the supply zone because from that zone the price can be drop so you close the order before the price drop.

 

Supply and Demand tradingSupply and Demand Structure

 

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading
error: Content is protected !!