Comments on: 3 Easy Ways to Tell if You Have Great Trading Ideas (without risking money)

By: Hugh Kimura

Hugh Kimura — Sat, 28 Nov 2015 10:01:53 +0000

In reply to Claudio.

Hi Claudio,

Thanks, that is a good point. However, you really have to have the ability to define a trading system by a programmable set of rules and that is beyond the ability/patience/desire of a lot of discretionary traders, including myself.

If you can do that, then great, it really is a special talent. But for most non-automated traders, there can be strong impulses to take trades that are outside of their trading system. That is where this post can help.

Hope all is well!

Cheers,
Hugh

By: Hugh Kimura

Hugh Kimura — Sat, 28 Nov 2015 09:55:18 +0000

In reply to chris.

Hey Chris,

Thanks for the tip, I didn’t know that FXBlue put out a manual backtester for MT. The others I have seen have been pretty bad, with the exception of Simple Forex Tester. I’ll give it a try and maybe I’ll make a video too 🙂 I still haven’t seen a MT plugin that will beat Forex Tester 2 though.

Yes, I totally believe in back and forward testing. However, my point is that when you are sitting at the charts, there can be a strong urge to take a trade that you have not tested. So either you ignore the idea, since you have not tested it…or you take the trade out of boredom or the desire to make money quickly.

Ignore the idea…if you do this, then you may miss out on some sort of intuition that you have not tapped into yet. If this is the case, then tracking your ideas in this way will alert you to the potential of these ideas and you can formulate a set of rules and rigorously test the strategy.

Take the trade…if you choose to take the untested trade, then you will probably lose money, in the long run. Therefore, by taking snapshots of these impulses, it lets you blow off the urge to take the trade and still allows you to see how you would have done. At least for me.

Anyway, thanks again for the tip and I hope your trading is going well!

Cheers,
Hugh

By: Hugh Kimura

Hugh Kimura — Sat, 28 Nov 2015 09:40:51 +0000

In reply to Mukisa Nicodemus. Happy it helped.

By: chris

chris — Thu, 19 Nov 2015 15:11:36 +0000

Hugh Hi,
Very nice site congrats, I have been a loner so far in this industry, now I see I can make friends.
Besides the above methods I suggest backtesting with…forward testing!
Couple of months ago I found a great site you should visit and recommend FXBlue.co (have a visit and you’ll see why I say so)., among other amazingly great utilities they have for MT4 they have an EA called Trading simulator for free. What it does is allows you to trade your strategy live but backtesting (open sell buy positions in paste and see how you would have done!!!. You can see where you went wrong or did well and repeat process!!!.
It is a bit complicated to understand how to use, you tube a spanish guy that shows how to do it (in spanish).

By: Claudio

Claudio — Thu, 19 Nov 2015 14:14:36 +0000

Hi Hugh,

very nice post. I would suggest another one to evaluate whether the trading idea is worth to investigate further or not: define it in a very specific way and then create a EA for backtesting.
After this step, it is possible to move on and perform in-depth analysis starting from a MT4 report of the backtest.
Of course, it could be a long way to walk, but I really like it (and use).

All the best,
Claudio

By: Mukisa Nicodemus

Mukisa Nicodemus — Thu, 19 Nov 2015 14:10:16 +0000

Am just appreciating your best services that you do offer to me.
Thanks alot letting me my mistakes so i elliminate them