Best Backtesting Method
Strategy backtesting is one of those things that are very important in forex trading. When you are coming up with a trading plan it is a very important stage and must be valued. Because once as a trader you come up with a hypothesis (a possible trading strategy) you should test it out first before you decide to put live funds on the line.
In my experience in trading, I have come across a lot of methods that do test out strategies in forex but this one is by far the best that I have seen. Dramatic pause…. It is of course the replay method that is offered on Tradingview. It is not only great in the sense that it gives you an accurate number of how your method is performing but it also gives you a feel of trading with live funds at the same time.
High Timeframe Traders
It is hard as a high timeframe trader to test out a strategy in real time since potential setups do not pan out a lot of times. Here, the replay mode helps a lot to test out strategies since you can fast forward weeks or even a month in a short space of time.
The replay mode is more of a simulation of price data over a long period of time that can be fixed to the best feel and efficiency of the trader. Thus, it gives a trader the best feel possible to actual trading when in fact it is not.
Efficient Price Action Testing
I do not think there is any other testing strategy to use when testing out price action trading other than this way. Because well, how else will you do the eye test in a computer program if you are going to use parameter testing. The other option people have is to close the price action of later dates and open it slowly as they test out their strategy, but problem is they end up testing in hindsight since you cannot effectively do this.