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What is the benefit for a software to have strategy backtesting

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The charting software that I use has recently upgrade its platform to include strategy backtesting and automated trading as part of the software. I am still not sure how these two features can assit me to trade better as my trading appraoch include the use of pivots, volume, fib, MACD, internal for trade excution. How can one create a strategy based on all the above and backtest the strategy successfully?

 

Please inputs your valuable thoughts

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A few guys over in the TS apparently created systems based on market internals. This type of sytem can be backtested without a problem. But I am with you on backtesting.... although I use pivots, internals, MP for my trading my entry point always boils down to tape. Now this is impossible to backtest. The best I can do is to keep track of all my trades and take notes. If youre entry is based on pivots, volume, fib, and MACD I dont see why it couldnt be backtested.

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Guest FLX

The only way to back test is to papertrade at today market and price because the computer has it own way of analysis and can not put your own personality into the test to give you a clear defined outcome. What you see and what the computer see is two different thing. Flx

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If you have trading rules then they can be backtested and then paper traded for the proof is in the pudding. I always backtest my ideas and if they are profitable, I paper trade next. Doing so has been very profitable for me. If you don't have certain rules for entry and exit but instead trade on the cuff or use your emotions then you must be lucky or you are doomed to lose.

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