Backtesting a playbook

Discussion in 'Learn how to trade or invest by asking questions' started by CoffeeHolic, Dec 11, 2016.

  1. CoffeeHolic

    CoffeeHolic New Member

    I have been trading for about a year now with pretty unflattering results. I would say I can tread water at the moment using no real concrete system other than some TA paired with a familiarity of the markets. I have been running swing trading backtests on the free sites out there which have given me a lot of good results (beating the s&p over a 10 year time frame) with at most 6% drawdown. I was curious how many successful traders rely on their backtests to develop their overall strategy and how much credence can really be given to the results of these?

    I trade a small account so at the moment I have nothing in my budget for subscriptions/education to teach me processes. I'm striving to develop a set of processes I can put into the finviz screener and after a little further discretion take up to 20 or so long positions with 5% of my portfolio (each position) holding 5 trading sessions give or take for overall profit. I would love to give Metastocks a try but as I said, theres just no way to justify the costs with the size of my account at the moment...

    I am in a lot of facebook trading groups (which I am getting pretty sick of) and I noticed nobody ever talks about the process(es) the use, nor backtests for that matter. It seems like a bunch of useless chatter where there may be one profitable trader (usually the creator of the group). Hoping to get some good feedback here. :)

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