How to Backtest and Collect Data + Backtesting Journal

00:39:55
https://www.youtube.com/watch?v=GLYOOpTxk3Q

Ringkasan

TLDRThe video emphasizes the importance of backtesting in trading, defining it as the process of running a trading strategy against historical data to assess performance. It outlines key components of effective backtesting, including the types of data to collect, such as win rates, average risk/reward ratios, and maximum drawdowns. The host discusses the significance of using reliable software like TradingView and FX Replay and explains the difference between backtesting and forward testing in live markets. The video provides practical advice on analyzing backtesting data to refine trading strategies, ultimately guiding traders toward informed decision-making for better financial outcomes.

Takeaways

  • 📊 Backtesting is crucial for validating trading strategies.
  • 📅 Collect data over a significant period for reliability.
  • 🔍 Use software like TradingView and FX Replay for analysis.
  • 📈 Analyze win/loss ratios and average returns.
  • 📝 Forward testing helps transition from paper trading to live trading.
  • 💡 Gather insights on trading days and times for better execution.
  • ⏳ Test across various market conditions.
  • ✍️ Document your findings for future reference.
  • 💰 Start small when moving to live trading for practical experience.
  • 🚀 Continuously improve your strategy based on backtesting results.

Garis waktu

  • 00:00:00 - 00:05:00

    This introduction emphasizes the importance of backtesting in trading, mentioning the common confusion among traders who find concepts clear in theory but struggle to apply them practically. The speaker hints at topics to be covered, such as backtesting methods, data collection, software tools, and the necessity of gaining a deep understanding of one's trading strategy through backtesting.

  • 00:05:00 - 00:10:00

    The speaker highlights the distinction between losing and winning traders, explaining that winning traders have strategies backed by data from extensive backtesting. The concept of ‘strategy hoping’ is introduced, where traders frequently jump from one strategy to another without thorough testing, usually resulting in losses; hence, they need to commit to backtesting to transition from losing to winning.

  • 00:10:00 - 00:15:00

    An introduction to backtesting is provided, defining it as testing a strategy against historical data to determine its effectiveness over a minimum of six months. The speaker stresses the significance of evaluating a strategy across various market conditions and emphasizes that lack of backtesting would result in reckless trading decisions.

  • 00:15:00 - 00:20:00

    This section outlines the benefits of backtesting, stating that it allows for rapid data collection and analysis. The speaker presents ten key pieces of data traders should gather during backtesting, starting from the final result (profit or loss) to win rates, risk-reward ratios, average stop-loss sizes, best and worst trading days, and maximum trade counts per day to optimize strategies.

  • 00:20:00 - 00:25:00

    More key data points are discussed, highlighting the need for traders to analyze their maximum winning and losing streaks, allowing them to better manage expectations in live trading. Granular analysis of trading sessions and liquidity is recommended to further refine trading strategies, knowing which strategies work best under which conditions.

  • 00:25:00 - 00:30:00

    The speaker transitions to forward testing, explaining the difference from backtesting. While backtesting reassures traders of a strategy's past effectiveness, forward testing encourages real-time application. The speaker recommends using small amounts in a live account to build confidence and validate strategies with actual market conditions, comparing it to sports practice overcoming competition stress.

  • 00:30:00 - 00:39:55

    Technical aspects of backtesting are covered, focusing on tools such as TradingView and FX Replay. The speaker points out the limitations of TradingView regarding historical data access, the need for manual data entry, and the potential for biased analyses. The introduction of the Notion template for data tracking and trade documentation is presented, along with practical demonstrations of both TradingView and FX Replay for real-time trade executions.

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Peta Pikiran

Video Tanya Jawab

  • What is backtesting?

    Backtesting is the process of testing a trading strategy on historical data to determine its effectiveness.

  • Why is backtesting important for traders?

    Backtesting helps traders understand the viability of their strategies and gather data to make informed trading decisions.

  • What data should I gather when backtesting?

    Key data includes final results, win/loss rates, average risk/reward ratios, and maximum drawdowns.

  • What tools can I use for backtesting?

    Tools like TradingView and FX Replay are popular choices for backtesting trading strategies.

  • What is the difference between backtesting and forward testing?

    Backtesting involves testing a strategy on past data, while forward testing involves testing it in live markets.

  • How long should I backtest a trading strategy?

    It is recommended to backtest a strategy over at least six months to a year for reliable results.

  • What should I do if a strategy shows losses during backtesting?

    If a strategy results in losses during backtesting, it is advisable to discard it or make adjustments.

  • Can I use backtesting results for live trading?

    Yes, backtesting results can guide trading decisions, but live trading may differ due to market conditions.

  • Is there a specific time to backtest?

    Backtesting should reflect various market conditions to ensure the strategy's robustness.

  • How can I analyze my backtesting data?

    You can analyze data by calculating win rates, average returns, and reviewing performance across different days and sessions.

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Teks
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Gulir Otomatis:
  • 00:00:00
    everybody tells you to backst but why
  • 00:00:02
    should you do it and how to actually do
  • 00:00:04
    it and what software to use what data to
  • 00:00:06
    gather how to gather your data where to
  • 00:00:08
    log it in we have all of those questions
  • 00:00:11
    welcome to the trading fanatic channel
  • 00:00:12
    in this video it's going to be all about
  • 00:00:15
    back TST how to do it different ways to
  • 00:00:17
    do it how to gather data and everything
  • 00:00:19
    you need to know about and I'm also
  • 00:00:20
    going to show you some softwares and I'm
  • 00:00:22
    going to give you a tool so actually go
  • 00:00:24
    ahead back test gain data about your
  • 00:00:25
    trading strategy and of course through
  • 00:00:27
    back testing you're going to become a
  • 00:00:28
    better Trader and learn your strategy in
  • 00:00:30
    and out so if you're excited about it
  • 00:00:33
    let's get into it let's say you bought a
  • 00:00:35
    course or you watch the Youtube video
  • 00:00:37
    and usually educators are going to
  • 00:00:39
    illustrate their point better by picking
  • 00:00:41
    textbook scenarios from the markets in
  • 00:00:43
    order to illustrate their point and at
  • 00:00:45
    the moment when you see that video and
  • 00:00:47
    when you see those examples you get that
  • 00:00:49
    pink aha moment and you're like wow this
  • 00:00:51
    really makes sense I really understand
  • 00:00:53
    this concept I'm just going to go ahead
  • 00:00:55
    and apply it in the markets it looks
  • 00:00:56
    pretty easy I understand it but then
  • 00:00:58
    tomorrow or on the same same day you go
  • 00:01:00
    on the markets and you try to find
  • 00:01:02
    examples or you even life trade what you
  • 00:01:04
    learned but it doesn't seem to work you
  • 00:01:06
    get losses and you get a little bit
  • 00:01:07
    confused maybe you go back to watch that
  • 00:01:09
    video again and again it makes sense but
  • 00:01:11
    again you just go on the live markets or
  • 00:01:13
    you just try to find some examples on
  • 00:01:15
    the charts and nothing seems to work so
  • 00:01:17
    then what you do is all right this video
  • 00:01:19
    doesn't work this course doesn't work
  • 00:01:20
    I'm going to find another one so what
  • 00:01:22
    that is called is strategy hoping and
  • 00:01:25
    why do Traders do this well they're too
  • 00:01:27
    lazy to actually sit down study back
  • 00:01:30
    test apply what they learn over a long
  • 00:01:32
    period of time and usually professional
  • 00:01:35
    Traders use data backed strategies so
  • 00:01:38
    they have a strategy that is backed up
  • 00:01:40
    by data over one or two years of back
  • 00:01:43
    testing that actually proves there is a
  • 00:01:45
    positive Edge within that strategy so
  • 00:01:47
    that they know over a long term they're
  • 00:01:49
    winning so that is the difference
  • 00:01:50
    between losing and winning Traders
  • 00:01:52
    winning Traders have data over their
  • 00:01:54
    strategies while losing Traders they
  • 00:01:56
    just study something they try to go
  • 00:01:58
    apply it it doesn't work immediately and
  • 00:01:59
    then then they try to find the next
  • 00:02:00
    thing and in order to transition from a
  • 00:02:02
    losing to a winning Trader you have to
  • 00:02:04
    back test so let me tell you what
  • 00:02:06
    actually back testing is as for the
  • 00:02:08
    basics back testing means simply going
  • 00:02:10
    back in time throughout past data to
  • 00:02:13
    pretty much test whether your strategy
  • 00:02:15
    worked in the past because it is said
  • 00:02:17
    that if a strategy produces positive
  • 00:02:19
    results in the past throughout a longer
  • 00:02:21
    period of time well it is most likely
  • 00:02:23
    going to yield the positive return also
  • 00:02:25
    in the future and again pay attention I
  • 00:02:27
    say over a longer period of time which
  • 00:02:29
    could like minimum 6 months I would even
  • 00:02:31
    go to back to the strategy for a year
  • 00:02:34
    because 3 months you can be winning in
  • 00:02:36
    the next one month you can blow all of
  • 00:02:38
    your earnings right so you got to make
  • 00:02:39
    sure to put it to the pressure test of
  • 00:02:41
    all different market conditions so again
  • 00:02:44
    never go forward without back testing a
  • 00:02:46
    strategy or a concept you want to use
  • 00:02:49
    now listen carefully because this is the
  • 00:02:50
    most important benefit of back testing
  • 00:02:53
    it serves the purpose of gathering data
  • 00:02:56
    regarding your trading strategy and the
  • 00:02:58
    beauty of it is that you can do it
  • 00:02:59
    really fast I mean if you want to test
  • 00:03:01
    one month of live data so if you want to
  • 00:03:03
    sit through one month of price action in
  • 00:03:05
    the live markets well again you got to
  • 00:03:07
    wait for 30 days but in back testing you
  • 00:03:09
    can just test one month of data for one
  • 00:03:11
    hour so you get to really gather data
  • 00:03:14
    fast so you can very quickly prove
  • 00:03:16
    whether your strategy actually works but
  • 00:03:18
    now when it comes to data I'm right now
  • 00:03:20
    going to give you 10 important pieces of
  • 00:03:22
    information that you should gather and
  • 00:03:24
    then of course I'm going to give you a
  • 00:03:25
    template for doing that so pay close
  • 00:03:27
    attention all right so the first
  • 00:03:28
    important piece of data you need is very
  • 00:03:30
    simple and very basic which is your
  • 00:03:32
    final result did you lose money or did
  • 00:03:34
    you win money if you lost money just
  • 00:03:36
    throw a strategy in the trash because
  • 00:03:38
    why would you continue testing something
  • 00:03:40
    that costed you money and if you
  • 00:03:41
    actually did win money well take into
  • 00:03:44
    account the percentage you return
  • 00:03:45
    because maybe there is something better
  • 00:03:47
    you can tweak later that is going to
  • 00:03:48
    yield you a better result second of all
  • 00:03:51
    is how many trades did you lose and how
  • 00:03:53
    many trades did you win which is going
  • 00:03:54
    to determine your win rate and you
  • 00:03:56
    pretty much do this by taking how many
  • 00:03:58
    trades you won out of all the trades you
  • 00:04:00
    took so if you took 100 trades and you
  • 00:04:02
    want 50 trades you divide either 100 by
  • 00:04:05
    50 or 50 by 100 and you're going to get
  • 00:04:07
    that 50% win rate now don't do the maths
  • 00:04:10
    by yourself I'm going to share an
  • 00:04:11
    amazing tool with you uh within the
  • 00:04:13
    nocean dashboard that automatically
  • 00:04:15
    calculates your win rate for you also
  • 00:04:16
    including break even trades now the
  • 00:04:18
    third thing you want to know is your
  • 00:04:20
    average R reward ratio you really want
  • 00:04:22
    to find out that sweet spot for your
  • 00:04:24
    strategy so that you know what is the
  • 00:04:26
    average RIS to reward that it is
  • 00:04:27
    returning and I want you to measure your
  • 00:04:30
    maximum rest reward on every single
  • 00:04:32
    trade and I want to measure your minimum
  • 00:04:34
    which is not that important why do I
  • 00:04:36
    make you measure the maximum roed word
  • 00:04:38
    of every trade because let's say you're
  • 00:04:40
    taking two r on every trade but on
  • 00:04:42
    average all of your trades are hitting
  • 00:04:43
    like 5 to six R so when you have that
  • 00:04:45
    information then of course you can make
  • 00:04:47
    a decision to increase your rward ratio
  • 00:04:49
    and of course make more money so it is
  • 00:04:52
    very important to F the median or the
  • 00:04:54
    average RIS reward ratio of your
  • 00:04:56
    strategy fourth and very important data
  • 00:04:59
    point this is this is your average
  • 00:05:00
    stop-loss size so what you simply have
  • 00:05:03
    to do is when you take a trade just
  • 00:05:04
    logging the stop- loss size you're
  • 00:05:06
    taking because again at the end of your
  • 00:05:07
    back testing session you're going to see
  • 00:05:09
    what is your usual or average stop- loss
  • 00:05:12
    so that when you encounter a trade life
  • 00:05:14
    if the stop loss is way too big from
  • 00:05:16
    what you're usually using maybe you skip
  • 00:05:17
    the trade if it's small maybe it's it's
  • 00:05:19
    better again you have to know your
  • 00:05:21
    average stop- loss size and of course
  • 00:05:22
    then you have to find ways in order to
  • 00:05:24
    either decrease it or increase it
  • 00:05:25
    depending on what you want to do fifth
  • 00:05:27
    point that not a lot of you do is to
  • 00:05:29
    take note of your best trading days and
  • 00:05:32
    I know you're going to be surprised but
  • 00:05:33
    you're literally going to see that for
  • 00:05:35
    example Mondays are your best days and
  • 00:05:37
    of course the sixth tip is to also Mark
  • 00:05:39
    up your worst days because again you
  • 00:05:41
    want to know on which days you're most
  • 00:05:43
    likely to lose money for me those are
  • 00:05:44
    Thursdays I don't know why but I lose
  • 00:05:46
    money on Thursday so guess what I don't
  • 00:05:48
    trade on Thursday I don't know why but
  • 00:05:50
    again throughout my back testing I see
  • 00:05:51
    that on Thursday I lost much more than I
  • 00:05:54
    want over a longer period of time so
  • 00:05:56
    again G this gives me the edge to skip
  • 00:05:58
    Thursdays to actually recharge myself
  • 00:06:01
    and to come back stronger on Friday
  • 00:06:03
    which is one of my best trading days
  • 00:06:05
    number seven is the max trades per day I
  • 00:06:09
    want you to back test like you're doing
  • 00:06:10
    in a textbook scenario I want you to
  • 00:06:12
    take every single trade that you see in
  • 00:06:14
    the live market so then of course you
  • 00:06:15
    know for example the maximum trades that
  • 00:06:17
    I ever took was six trades because when
  • 00:06:20
    you have that number you know later how
  • 00:06:22
    to tweak your risk parameters because
  • 00:06:23
    for example you might say oh I'm only
  • 00:06:25
    going to take two trades per day but
  • 00:06:27
    what if those first two trades are
  • 00:06:28
    losses and then the third trade is a win
  • 00:06:31
    right and this is why you really have to
  • 00:06:32
    first back test see what is the maximum
  • 00:06:34
    amount of Trades you can take per day so
  • 00:06:36
    that you know also how to tweak your
  • 00:06:37
    risk parameters if you risk like 2% per
  • 00:06:39
    trade and you lose two trades in a row
  • 00:06:41
    well you're down quite a lot but if you
  • 00:06:43
    know that on average you take six trades
  • 00:06:45
    per day then of course you're going to
  • 00:06:46
    decrease your risk a little bit so that
  • 00:06:48
    you allow more bullets to strike
  • 00:06:49
    throughout the day which brings me to
  • 00:06:51
    point number eight which is the max
  • 00:06:53
    losses you have per day so what is the
  • 00:06:56
    maximum amount of losses you're going to
  • 00:06:58
    be taking per day which of course is
  • 00:06:59
    going to show you like what kind of
  • 00:07:00
    losing streak you can get into or when
  • 00:07:02
    should you stop trading because if you
  • 00:07:04
    find out that some days you can take
  • 00:07:05
    four to five losses in a row then maybe
  • 00:07:07
    you decide okay well if I took three
  • 00:07:09
    losses in a row or four then I'm just
  • 00:07:10
    going to stop and not go even forward so
  • 00:07:12
    again take note of that the other point
  • 00:07:14
    you want to also Mark out is your max
  • 00:07:17
    losing streak and that is extremely
  • 00:07:19
    important because if you know that for
  • 00:07:21
    example in your back testing you had a
  • 00:07:22
    period in which you lost 12 trades in a
  • 00:07:24
    row which happens with strategies of
  • 00:07:26
    like 30 to 40 to 50% win rate it is very
  • 00:07:28
    possible you lose like more than 10
  • 00:07:30
    trades in a row but if you actually have
  • 00:07:31
    this in your data when you're life
  • 00:07:33
    trading and if you lose a trade and then
  • 00:07:35
    second and third and Fifth and fourth
  • 00:07:36
    and sixth and like oh you're not going
  • 00:07:38
    to be panicking because you know in back
  • 00:07:40
    testing your maximum losing streak is 12
  • 00:07:42
    trades and you also know that longterm
  • 00:07:44
    you're going to get on top so take note
  • 00:07:46
    of your maximum losing streak and also
  • 00:07:48
    opposite take note of your maximum
  • 00:07:50
    winning streak how many trades did you
  • 00:07:52
    win in a row on a maximum basis because
  • 00:07:55
    then you know for example if on average
  • 00:07:56
    you take five winners in a row then you
  • 00:07:58
    might know like if if you take four if
  • 00:08:00
    you take five winners in a row in the
  • 00:08:01
    live markets well you might start
  • 00:08:03
    expecting that next loss and I know it
  • 00:08:04
    sounds strange you just got to keep
  • 00:08:06
    showing up but having that data to
  • 00:08:08
    support you well you know okay I'm on a
  • 00:08:10
    five trade winning streak well most
  • 00:08:12
    likely I'm going to take a loss and
  • 00:08:13
    you're actually prepared and finally I
  • 00:08:15
    want you to actually get granular with
  • 00:08:18
    your trading strategy and by granular I
  • 00:08:20
    mean dive even deeper what you can also
  • 00:08:22
    look for is timing which session is your
  • 00:08:25
    best performing session for the strategy
  • 00:08:27
    exactly at what time because what I
  • 00:08:28
    found for my strategy is that it
  • 00:08:30
    performs the best on London open and if
  • 00:08:33
    I do not take my trade in those two
  • 00:08:35
    hours into London open then on the next
  • 00:08:37
    hours I'm going to lose all right and
  • 00:08:39
    this is actually getting granular into
  • 00:08:40
    the strategy and not only also looking
  • 00:08:42
    at the technicals so for example you can
  • 00:08:44
    get granular on liquidity how many of
  • 00:08:46
    the trades you win if the Asian session
  • 00:08:48
    high or low is not taken how many of the
  • 00:08:50
    trades you win if the session higher low
  • 00:08:52
    is taken right how many trades do you
  • 00:08:54
    win or lose if you're trading on the 50
  • 00:08:56
    minute how many trades do you win or
  • 00:08:57
    lose if you're trading on the 30 minute
  • 00:08:59
    you got to really get granular in order
  • 00:09:00
    to find those little things that are
  • 00:09:02
    eventually going to help you make more
  • 00:09:04
    profits all right I really hope you took
  • 00:09:05
    note of all of those data points and now
  • 00:09:07
    before we jump into the technicals and
  • 00:09:09
    actually show you how to back test with
  • 00:09:10
    the technicalities I want to first talk
  • 00:09:12
    about forward testing or also known as
  • 00:09:14
    paper trade and I really love this the
  • 00:09:17
    difference between back testing and
  • 00:09:18
    forward testing is that within forward
  • 00:09:20
    testing you're actually testing the
  • 00:09:22
    strategy live so listen first you have
  • 00:09:24
    to back test you have to really prove to
  • 00:09:27
    yourself that this strategy has worked
  • 00:09:28
    in the past but again just like in
  • 00:09:30
    sports you can be really good at
  • 00:09:32
    practice right you can be great at
  • 00:09:33
    practice you can be doing great results
  • 00:09:36
    but when competition comes in you might
  • 00:09:38
    freeze and you might not be able to
  • 00:09:39
    execute on what you actually did on the
  • 00:09:41
    practice right same with trading if you
  • 00:09:43
    performed amazing in back testing again
  • 00:09:45
    in back testing you're calm there is no
  • 00:09:47
    emotions running there is no like live
  • 00:09:49
    candles sticking because in live markets
  • 00:09:51
    you might miss the trades you might not
  • 00:09:53
    see the trades every single scenario is
  • 00:09:55
    going to be different so again you have
  • 00:09:57
    to spend a lot of time forward testing
  • 00:09:59
    the strategy in the live markets in
  • 00:10:00
    order to really gain that confidence and
  • 00:10:02
    actually the skill to execute the
  • 00:10:04
    strategy because back testing showed you
  • 00:10:06
    that it works but then of course after
  • 00:10:08
    receipt works you have to get better at
  • 00:10:10
    executing it live so if you ask me your
  • 00:10:13
    next step after back testing should be
  • 00:10:15
    to open a small Live account right so
  • 00:10:17
    100 $300 $500 whatever you can afford
  • 00:10:20
    and just trade very low risk like
  • 00:10:23
    0.01% or maybe even just take 0.01 lots
  • 00:10:26
    and what is this going to help you is to
  • 00:10:28
    actually get involved in the market but
  • 00:10:30
    with real money and real execution
  • 00:10:33
    because a lot of you trade demo like
  • 00:10:35
    screw demo you you don't need demo
  • 00:10:36
    because again there is no emotions it's
  • 00:10:38
    fake money and the transition from demo
  • 00:10:40
    to life is usually very painful so much
  • 00:10:43
    better make a little investment of a
  • 00:10:44
    very small amount into a live trading
  • 00:10:46
    account and start taking those trades
  • 00:10:48
    live based on your back tested strategy
  • 00:10:51
    but with real funds and pretty much this
  • 00:10:53
    is going to help you perform better
  • 00:10:54
    later when you start trading life with
  • 00:10:56
    bigger risk like 0.50% or 1% risk
  • 00:10:59
    because you have seen that during live
  • 00:11:01
    markets with low risk you actually sold
  • 00:11:04
    a strategy and you executed on the
  • 00:11:06
    strategy and you're going to be well
  • 00:11:07
    prepared later and often times like you
  • 00:11:09
    can be really profitable in back testing
  • 00:11:12
    but funny as it is you go on the live
  • 00:11:13
    markets and you get crushed and this is
  • 00:11:15
    pretty much because the market changes
  • 00:11:17
    its cycle we get some new things
  • 00:11:19
    developing in the world economy that
  • 00:11:20
    changes the market sentiment and again
  • 00:11:22
    your strategy all of a sudden stops
  • 00:11:24
    working so do not give up keep testing
  • 00:11:26
    for a long period of time 3 months 6
  • 00:11:28
    months to really see whether it works
  • 00:11:30
    master that strategy and again do not
  • 00:11:33
    spend months just back testing going
  • 00:11:35
    back all the way to like 2018 to back
  • 00:11:37
    this where it worked in two years the
  • 00:11:38
    only data you need is the most recent
  • 00:11:40
    year so get that and then get into the
  • 00:11:43
    live markets because it's much better to
  • 00:11:45
    learn from the live markets and adapt
  • 00:11:47
    that strategy rather than just spending
  • 00:11:48
    time on back test all right it's time to
  • 00:11:50
    get technical because I know you're here
  • 00:11:53
    just for that now in order to back this
  • 00:11:55
    properly you're going to be needing a
  • 00:11:56
    data Gathering tool now this is usually
  • 00:11:59
    training view for a lot of us but there
  • 00:12:01
    are also some incredible softwares like
  • 00:12:03
    FX Replay that allows it to actually go
  • 00:12:05
    back through for a lot of data and
  • 00:12:08
    actually to execute the strategy as you
  • 00:12:10
    are in real time so I'm going to talk
  • 00:12:11
    about two of them but for both of those
  • 00:12:14
    well for FX replay it gives you a lot of
  • 00:12:15
    data we're going to talk about in a bit
  • 00:12:17
    but for trading view you are going to
  • 00:12:19
    need some sort of a data Gathering too
  • 00:12:21
    like an Excel spreadsheet or also
  • 00:12:24
    because I really love you oh Fanatics
  • 00:12:25
    I'm going to give away to you an
  • 00:12:27
    incredible notion spreadsheet in which
  • 00:12:29
    you can actually include all the data
  • 00:12:31
    points I mentioned a little bit earlier
  • 00:12:32
    and not only that but again within that
  • 00:12:34
    notion spreadsheet you're going to get
  • 00:12:35
    kind of separate data points for all of
  • 00:12:37
    the trades you took and for every single
  • 00:12:39
    trade there is going to be another
  • 00:12:40
    little template that you can actually
  • 00:12:42
    enter your hard time frame middle time
  • 00:12:43
    frame lower time frame analysis and also
  • 00:12:45
    reflect on that trade and also some
  • 00:12:47
    incredible stuff which we're going to be
  • 00:12:49
    covering in a bit so as I said we can
  • 00:12:50
    either back test on trading view or on a
  • 00:12:52
    FX replay software so let's jump into
  • 00:12:55
    the charts and have a look at both
  • 00:12:56
    options all right so if you decide to
  • 00:12:58
    use use trading view for your back
  • 00:13:00
    testing there are a few things you must
  • 00:13:02
    know about first of all you have limited
  • 00:13:05
    data to go back to when you use trading
  • 00:13:07
    view for example if you go down to the
  • 00:13:09
    one minute time frame you can just get
  • 00:13:11
    around four to five weeks of data with
  • 00:13:13
    the basic plan however if you try to
  • 00:13:16
    back this hard time frames like let's
  • 00:13:17
    say 15 minute to 5 minute you can go
  • 00:13:20
    further back in time so for example
  • 00:13:22
    myself I believe I am with the most kind
  • 00:13:24
    of basic plan which is yeah this
  • 00:13:26
    Essentials plan and again like with this
  • 00:13:29
    thing you get absolutely everything you
  • 00:13:31
    need and you can see you get 10K
  • 00:13:33
    historical bars so I think this is
  • 00:13:35
    pretty much 10,000 um one minute candles
  • 00:13:38
    which is pretty much going to give you
  • 00:13:39
    how many weeks and how many days you can
  • 00:13:41
    go back to so again like if I just go
  • 00:13:43
    back to the weekly time frame you can
  • 00:13:45
    see that if you try to go way back in
  • 00:13:46
    time like this and then you go to the
  • 00:13:49
    one minute oops you're going to have a
  • 00:13:51
    data point unavailable right here so
  • 00:13:53
    again if you go to the weekly time frame
  • 00:13:55
    I do think you can get around 1 2 3 4
  • 00:13:58
    for five weeks of data so if you go five
  • 00:14:01
    weeks back and then if you go to the 1
  • 00:14:03
    minute time frame there we go we have
  • 00:14:05
    the data so make sure to keep that in
  • 00:14:07
    mind second point is that you're not
  • 00:14:09
    held accountable when you use trading
  • 00:14:12
    view so for example you can take trades
  • 00:14:14
    after they happened or you can skip
  • 00:14:15
    trades if they lose I used to do that
  • 00:14:17
    again don't lie to yourself because if
  • 00:14:20
    you use trading view you're going to
  • 00:14:21
    need honesty if you didn't see the trade
  • 00:14:23
    and if you miss the trade you don't
  • 00:14:25
    include it in your back testing just
  • 00:14:26
    because the trade happened but you
  • 00:14:28
    didn't take it it doesn't mean you have
  • 00:14:29
    to include it because then you're
  • 00:14:30
    getting into unrealistic back testing
  • 00:14:32
    dates okay and third of all you have to
  • 00:14:35
    put in the work to enter all of your
  • 00:14:37
    data manually into a sheet which a lot
  • 00:14:39
    of Traders are lazy to do so you cannot
  • 00:14:41
    just go on trading View and like go on
  • 00:14:42
    the 50-minute time frame and say okay
  • 00:14:44
    I'm going to take for example this short
  • 00:14:46
    and I'm going to take for example this
  • 00:14:47
    short my strategy Works no you have to
  • 00:14:50
    gain a lot of data and this is why I
  • 00:14:52
    personally make my private Menders go
  • 00:14:54
    back in time and give me 50 trades back
  • 00:14:57
    tested or live traded which then we go
  • 00:14:59
    together and review on a one-on-one
  • 00:15:00
    basis okay so with that being said as
  • 00:15:03
    one of the gifts in this video I have
  • 00:15:04
    included a notion back testing template
  • 00:15:07
    in the description in this video so make
  • 00:15:08
    sure to grab it and right now I'm going
  • 00:15:10
    to give you an example of how we can use
  • 00:15:11
    trading view uh to take trades and then
  • 00:15:13
    of course I'm going to show you how to
  • 00:15:14
    use the notion template in order to
  • 00:15:16
    enter your data all right so as I
  • 00:15:18
    explained you can go if you if you want
  • 00:15:20
    to test the one minute time frame you
  • 00:15:22
    can go back just five weeks so we have
  • 00:15:24
    to go for example at the beginning of
  • 00:15:26
    October and then of course you go on the
  • 00:15:27
    weekly time frame by hitting the replay
  • 00:15:29
    tool right there and again you need that
  • 00:15:31
    paid option on trading View and then
  • 00:15:33
    what you simply do is you perform your
  • 00:15:35
    top down analysis again so let's say in
  • 00:15:37
    this case the market broke structure to
  • 00:15:39
    the upside so we're bullish but then of
  • 00:15:40
    course the market came back it broke
  • 00:15:42
    structure to the downside so we're
  • 00:15:43
    bearish that is our supply Zone So
  • 00:15:45
    currently we're at a lower low we can
  • 00:15:46
    expect the potential pullback or of
  • 00:15:48
    course we can expect the continuation
  • 00:15:50
    okay so get real with the actual stuff
  • 00:15:52
    you're going to be doing when you life
  • 00:15:53
    trade okay then of course you drop to
  • 00:15:55
    the 50-minute time frame and once again
  • 00:15:57
    feel free to add all of your IND
  • 00:15:58
    indicators now the beauty of trading
  • 00:16:00
    view is that you can add for example the
  • 00:16:02
    Asian session you can add different
  • 00:16:03
    tools that you want to use so let's say
  • 00:16:05
    for example I'm just going to play
  • 00:16:06
    50-minute candles until the Asian
  • 00:16:08
    session ends and pretty much this is how
  • 00:16:10
    I'm going to tackle the market live
  • 00:16:12
    there it is Asian session has closed
  • 00:16:13
    Frankford is about to open so again I'm
  • 00:16:15
    going to see what I'm going to be
  • 00:16:16
    looking for well potentially to take out
  • 00:16:18
    the asan high and to take a short with
  • 00:16:20
    the trend or if we start by taking the
  • 00:16:22
    low knowing that we're at a lower low
  • 00:16:23
    I'm going to be looking for long okay so
  • 00:16:25
    again you pretend you're life trading
  • 00:16:26
    and of course you wait I can see that
  • 00:16:28
    the Asian range was very nicely taken so
  • 00:16:30
    let's say that if I get a trend change
  • 00:16:32
    above this guy I'm going to take a trade
  • 00:16:33
    and let's say you want to enter like
  • 00:16:35
    with a stop order right do it before it
  • 00:16:38
    actually happens because I suspect this
  • 00:16:39
    one can actually break up right now and
  • 00:16:41
    then of course you're going to miss the
  • 00:16:43
    trade okay so if you want to take a
  • 00:16:44
    trade don't let's just see what happens
  • 00:16:46
    right so there we go so don't just say
  • 00:16:47
    oh this Market went up well I would have
  • 00:16:49
    entered this trade from here no you
  • 00:16:50
    cannot do that okay so before you decide
  • 00:16:52
    to take a trade you first set your order
  • 00:16:54
    here or here whatever you like to set it
  • 00:16:56
    you set your TP let's say we're going to
  • 00:16:58
    go for 2 hour right and then of course
  • 00:17:00
    you've taken the trade then you see how
  • 00:17:01
    it plays out there we go take profit for
  • 00:17:03
    example okay so this is not a strategy
  • 00:17:05
    back testing VI I just want to show you
  • 00:17:07
    how it's done okay so now that you have
  • 00:17:08
    the trade maybe you just allowed for it
  • 00:17:10
    to play out to see what is going to
  • 00:17:11
    happen then what you do is you go to
  • 00:17:13
    your notion template so let me flick to
  • 00:17:16
    the other screen so that I can actually
  • 00:17:17
    show you so once you open it it's going
  • 00:17:19
    to look something like this so let me
  • 00:17:21
    give you a brief tutorial now first of
  • 00:17:22
    all you're going to click here to add a
  • 00:17:24
    row and of course you can say the pair
  • 00:17:26
    so right now we're back testing gbpusd
  • 00:17:28
    you click enter then of course you can
  • 00:17:30
    describe your strategy so let's say
  • 00:17:31
    we're going to be back testing a 50
  • 00:17:32
    minute uh swing trading right or
  • 00:17:34
    something like this the date so of
  • 00:17:36
    course we started for as you said we
  • 00:17:37
    started from the 1st of October so that
  • 00:17:39
    we know from when we're back testing in
  • 00:17:41
    any details right so I am going to back
  • 00:17:44
    test the 50 minute sell stops buy stops
  • 00:17:47
    buy stops above structure something like
  • 00:17:49
    this okay so just briefly describe what
  • 00:17:50
    the back testing station is about then
  • 00:17:52
    you you click here so again if you're
  • 00:17:54
    familiar with notion that is very good
  • 00:17:55
    to click here and you get this uh new
  • 00:17:58
    page then you have to click on this
  • 00:17:59
    template that I have prepared for you
  • 00:18:01
    back test template you click on that you
  • 00:18:02
    can make it full screen and we just wait
  • 00:18:04
    for this to get populated so there is
  • 00:18:05
    your pretty much your template here are
  • 00:18:07
    all of your back tests okay and there
  • 00:18:09
    are some details below that so let's say
  • 00:18:12
    for example we took our first trade so
  • 00:18:13
    we type trade one today uh it was Monday
  • 00:18:17
    okay so time of the day again go back to
  • 00:18:19
    the Chart what what time did we take
  • 00:18:21
    this trade on again based on your time
  • 00:18:22
    zone it's at 8:15 of course we go back
  • 00:18:25
    and we say me do that and we say 8 8:15
  • 00:18:28
    so the entry model again this was a 5050
  • 00:18:30
    minute counter Trend because we were
  • 00:18:32
    trading against the the 4 hourly Trend
  • 00:18:34
    so again feel free to include things how
  • 00:18:35
    do you include things you just click
  • 00:18:37
    here and for example let's say you say
  • 00:18:38
    30 minute counter Trend right you just
  • 00:18:40
    create a new one it's very easy entry
  • 00:18:42
    method so again did you wait for 1
  • 00:18:44
    minute TC did you enter with a 5 minute
  • 00:18:46
    TC did you wait for a 1 minute stop
  • 00:18:48
    sorry for a 15-minute stop order again
  • 00:18:50
    feel free to add anything you want right
  • 00:18:52
    there stop loss Pips well again if I
  • 00:18:54
    look at the charts the stop loss of this
  • 00:18:55
    trade was 14 Pips so we type 14 we type
  • 00:18:58
    14 we made two R and the potential R the
  • 00:19:01
    market made was pretty much 2.1 and then
  • 00:19:03
    of course you can see I've added the
  • 00:19:05
    formula that is automatically going to
  • 00:19:07
    calculate whether it's a win a loss or a
  • 00:19:08
    break even so again if you if you make a
  • 00:19:10
    break even trade okay now that's the
  • 00:19:12
    potential R so if you make a break even
  • 00:19:14
    trade right there zero it's going to
  • 00:19:15
    turn as a break even if you like take
  • 00:19:17
    minus one it's going to turn as a loss
  • 00:19:19
    okay then what you want to do is you go
  • 00:19:21
    to here and you click trade so when you
  • 00:19:23
    click trade uh another thing is going to
  • 00:19:25
    populate once again just wait for it so
  • 00:19:27
    there it is watch your have right here
  • 00:19:28
    is higher time frame Market structure
  • 00:19:30
    lower time frame structure and then
  • 00:19:32
    entry and result so here you go back to
  • 00:19:34
    your chart and right now you take a
  • 00:19:36
    screenshot of your thought process right
  • 00:19:38
    so again here you're going to screenshot
  • 00:19:40
    this or maybe you add an annotation so
  • 00:19:42
    say here 4 was at a lower low I expect
  • 00:19:46
    pullback towards 50% okay so maybe we
  • 00:19:48
    forgot to add our Fibonacci there's a
  • 00:19:50
    Fibonacci I expect the pullback and then
  • 00:19:52
    po it so then you click here and then
  • 00:19:53
    you click copy image and then you go
  • 00:19:55
    back to your template and you just click
  • 00:19:58
    contrl + V boom there's a chart now for
  • 00:20:00
    your lower time frame minor structure
  • 00:20:02
    you again go to your chart again
  • 00:20:04
    depending on what your middle time frame
  • 00:20:06
    is in this case the 50 minute we take a
  • 00:20:08
    screenshot on the 50 minute and again
  • 00:20:09
    add annotations put some intention into
  • 00:20:11
    your charts I entered here with a stop
  • 00:20:14
    order targeting right 2 R 2 R after
  • 00:20:18
    taking Asian low right so explain what
  • 00:20:20
    you did then again copy image going back
  • 00:20:22
    to the to the template hitting control +
  • 00:20:24
    V boom there it is and again keep in
  • 00:20:26
    mind you can also you have empty space
  • 00:20:28
    right there you can you can type I took
  • 00:20:30
    this trade because of X because of Y
  • 00:20:32
    okay and then of course if you have even
  • 00:20:34
    a lower time frame if you go to the one
  • 00:20:35
    minute time frame I usually put a one
  • 00:20:37
    minute chart down there so what this
  • 00:20:38
    makes you is a collection of Trades then
  • 00:20:41
    when you go back okay my first trade it
  • 00:20:43
    was a it was a true R profits okay let
  • 00:20:45
    me see what I actually did okay well the
  • 00:20:47
    4y time frame was counter Trend but the
  • 00:20:48
    50 minute made this I took profit here
  • 00:20:50
    and then I can see the market reverse so
  • 00:20:52
    then here you can see how everything
  • 00:20:54
    actually work and then again you
  • 00:20:55
    continue so right now after this trade
  • 00:20:57
    played out again based on your strategy
  • 00:21:00
    you just continue you go back to the F
  • 00:21:01
    time frame maybe you just wait for the
  • 00:21:03
    new day right so let's wait for a new
  • 00:21:05
    day right there there is the new day
  • 00:21:06
    well what the market did is just
  • 00:21:08
    massively continued to break structure
  • 00:21:09
    lower we're at a very big lower low
  • 00:21:11
    right now we're get to drop to the
  • 00:21:12
    50-minute time frame what is the Asian
  • 00:21:14
    session doing it is trending to the
  • 00:21:15
    downside so again I would potentially
  • 00:21:17
    expect a little popup and a continuation
  • 00:21:18
    lower or maybe a manipulation lower and
  • 00:21:21
    and a buy move again we can see the
  • 00:21:23
    market is manipulating higher right now
  • 00:21:25
    but in this case like for example if you
  • 00:21:27
    want to enter short maybe want to go to
  • 00:21:28
    the 5 minute and wait for a 5 minute
  • 00:21:30
    Trend change like this right again this
  • 00:21:32
    is not a strategy video so there is our
  • 00:21:34
    Trend change again take the trade as you
  • 00:21:36
    would take it live so don't just come in
  • 00:21:38
    right there and say oh this Market moved
  • 00:21:39
    down I took the trade from here no you
  • 00:21:41
    took it from there and again you're
  • 00:21:43
    let's say you're going to Target Two R
  • 00:21:44
    and again you allow the trade to play
  • 00:21:46
    out now if you're going to go break even
  • 00:21:47
    or anything like this or maybe if you
  • 00:21:49
    see it like this and you decide to close
  • 00:21:50
    the trade be honest okay so let's see
  • 00:21:52
    what happens boom boom boom boom okay so
  • 00:21:55
    at that's that case I would definitely
  • 00:21:56
    go break even because we took out like
  • 00:21:58
    the Asian low so the market is very
  • 00:21:59
    likely to pull back so in this case
  • 00:22:01
    again I just go break even maybe I just
  • 00:22:03
    put a little line to tell me and break
  • 00:22:05
    even and there we go we got break even
  • 00:22:06
    now once again qu time frame go back to
  • 00:22:09
    the to to your two then you do trade two
  • 00:22:12
    that trade was taken on Tuesday you
  • 00:22:13
    checked the time it was taken during
  • 00:22:15
    9:30 in the morning it was a uh
  • 00:22:18
    50-minute continuation because we traded
  • 00:22:20
    with the trend uh I took it with a 5
  • 00:22:22
    minute Trend change the stop- loss was
  • 00:22:24
    uh x amount of Pips in this case 15 Pips
  • 00:22:27
    and the result was a zero so that is a
  • 00:22:30
    break even trade now again you go click
  • 00:22:32
    here and click on trade and then you
  • 00:22:34
    simply add everything that you did again
  • 00:22:36
    okay so hopefully that's clear right now
  • 00:22:38
    let me actually jump a little bit deeper
  • 00:22:39
    into all the data here that we have so
  • 00:22:41
    as you go through this process of back
  • 00:22:43
    testing you're going to spot patterns I
  • 00:22:46
    promise you there are going to be things
  • 00:22:47
    that make an impression on you or things
  • 00:22:49
    that you want to uh to remove from the
  • 00:22:51
    trading or something that you spot is
  • 00:22:53
    happening that you want to add to your
  • 00:22:54
    trading keep those notes right there so
  • 00:22:56
    those are your granular in sites from
  • 00:22:58
    your testing so for example you spot
  • 00:23:00
    that a 5minute TC works better than
  • 00:23:02
    50-minute TC because the stop loss the
  • 00:23:05
    stop loss of the 50-minute TC is is is
  • 00:23:07
    bigger right so then you you keep note
  • 00:23:09
    of these things because that is
  • 00:23:11
    essentially what is going to shape your
  • 00:23:12
    trading strategy okay so here you take
  • 00:23:14
    note of stuff like this now when you're
  • 00:23:16
    ready with the back test right there
  • 00:23:18
    you're pretty much going to see all the
  • 00:23:20
    data so you're going to see here under
  • 00:23:21
    values how many trades you have you're
  • 00:23:23
    going to see your stop loss if you want
  • 00:23:24
    to calculate your stop loss just click
  • 00:23:25
    calculate and then you do average so
  • 00:23:27
    you're going to see what's your average
  • 00:23:28
    stop- loss here under the result you're
  • 00:23:30
    going to see what kind of result you
  • 00:23:32
    have here at potential r as I told you
  • 00:23:34
    track your track the maximum Roost to
  • 00:23:36
    reward that you get for the trade right
  • 00:23:38
    so example let's say here is three there
  • 00:23:39
    is this and then for example here you
  • 00:23:41
    can do again median or average this is
  • 00:23:43
    going to show you like around an average
  • 00:23:44
    and you're going to get a lot of date so
  • 00:23:46
    again total amount of Trades you have it
  • 00:23:48
    right there two win rate now if you
  • 00:23:49
    scroll a little bit down you're going to
  • 00:23:51
    have this win rate calculator if I try
  • 00:23:53
    to open it there it is so again here you
  • 00:23:55
    just enter your data it's a very nice
  • 00:23:57
    calculator so let's say you took uh 20
  • 00:23:59
    wins and let's say you take five break
  • 00:24:02
    evens and let's say you took like 18
  • 00:24:04
    losses that IM middle is going to tell
  • 00:24:06
    you how many trades you took and what is
  • 00:24:07
    your winning percent in this case with a
  • 00:24:09
    20 winners 18 losses and five break
  • 00:24:11
    evens you get a 46. 51% you go back to
  • 00:24:14
    your uh dashboard right there and of
  • 00:24:16
    course you are going to type your
  • 00:24:18
    overall win rate again let's say 46%
  • 00:24:21
    average trades per day now this one you
  • 00:24:23
    know by having a look at the days right
  • 00:24:25
    there so again you see you count every
  • 00:24:27
    single Monday Monday Monday how many
  • 00:24:28
    trades did you take on Monday how many
  • 00:24:30
    trades did you take on Tuesday right so
  • 00:24:32
    how many trades did do you usually take
  • 00:24:34
    per day maximum losses you're pretty
  • 00:24:36
    much going to see it here if you have
  • 00:24:37
    like a loss loss loss loss loss loss
  • 00:24:40
    then you're going to see how many you
  • 00:24:41
    have in cons in consecutive ones maximum
  • 00:24:43
    wins largest amount of Trades per day
  • 00:24:45
    best trading day worst trading day take
  • 00:24:46
    note of everything and then for your
  • 00:24:48
    qualitative analysis this is where I
  • 00:24:50
    want you to type more words right so
  • 00:24:52
    when was the best timing for your trades
  • 00:24:53
    and again this is not very uh
  • 00:24:55
    quantitative because again like it's
  • 00:24:56
    very hard to say well 12:00 is the best
  • 00:24:58
    time although it's possible to do that
  • 00:25:00
    again just type in my impression right
  • 00:25:02
    here type in my impression London
  • 00:25:04
    session was best I was taking the best
  • 00:25:06
    the best trades during the first two
  • 00:25:07
    hours of London New York didn't work for
  • 00:25:10
    me right so then on the next your best
  • 00:25:12
    days right so on the best days I found
  • 00:25:14
    out I traded the mo the best on Tuesday
  • 00:25:16
    I think because on Tuesday the market
  • 00:25:18
    was forming the weekly high and low and
  • 00:25:19
    I was able to catch the market at a very
  • 00:25:21
    good positioning okay any patterns that
  • 00:25:23
    you spotted anything that is making an
  • 00:25:25
    impression on you type it down and based
  • 00:25:27
    on all the data you gathered what is
  • 00:25:29
    something that you can change or you can
  • 00:25:30
    tweak to make this system better okay so
  • 00:25:32
    for me that was timing that was
  • 00:25:34
    liquidity that was again trading at the
  • 00:25:36
    right time and also increasing my risk
  • 00:25:38
    of reward from two to two and a half
  • 00:25:40
    because I found that my trades are
  • 00:25:42
    running a little bit more than two are
  • 00:25:43
    so I ended up increasing migrain rate so
  • 00:25:45
    again I'm going to try to right now go
  • 00:25:46
    and show you some of my back testing
  • 00:25:48
    data so that you can actually see how a
  • 00:25:49
    fi chart is going to look like so for
  • 00:25:52
    example here are some of my back testing
  • 00:25:54
    uh journals right there until I switched
  • 00:25:56
    to FX replay I was definitely using a
  • 00:25:59
    trading view so again like for example
  • 00:26:01
    if I click on one of these you're going
  • 00:26:03
    to see a lot of data so there it is
  • 00:26:05
    exactly the same thing that I'm sharing
  • 00:26:06
    with you the day the time the session
  • 00:26:08
    the entry model Pips stop entry size I
  • 00:26:10
    was even measuring right there if I
  • 00:26:12
    enter on the stop uh if I enter on the
  • 00:26:14
    on the trend change itself like how many
  • 00:26:16
    Pips is going to be did it top 10r R
  • 00:26:18
    rewards uh the the biggest percentage
  • 00:26:20
    that I got right so how do I actually
  • 00:26:22
    move this to the left right and then I
  • 00:26:24
    was actually looking for um like I was
  • 00:26:26
    just placing some screenshots right
  • 00:26:28
    there because in this case I didn't
  • 00:26:29
    really put uh images because I was
  • 00:26:31
    looking for a slightly quicker back test
  • 00:26:33
    right and then of course you can see if
  • 00:26:35
    I just go back at it right you can see
  • 00:26:36
    at the bottom you're going to get like
  • 00:26:38
    how many trades that is and then of
  • 00:26:40
    course you see out of 158 trades the
  • 00:26:42
    median stop loss is 4 Pips so I know
  • 00:26:44
    that based on all the trades I took four
  • 00:26:46
    pip stop loss is my ideal stop loss
  • 00:26:48
    again the result 200% uh the biggest uh
  • 00:26:51
    redward that the trade was running for
  • 00:26:53
    was 9R so again I know that if a trade
  • 00:26:55
    actually goes it has a very big
  • 00:26:57
    potential to go up 61 wins 73 losses 21
  • 00:27:00
    break evens again if I just go to this
  • 00:27:03
    to right there and if I just use the
  • 00:27:05
    stats I'm going to immediately tell you
  • 00:27:06
    my win rate there it is so I took uh 61
  • 00:27:09
    wins I took 73 losses 73 losses and 21
  • 00:27:12
    break even so there you go my win rate
  • 00:27:13
    is 40% which is pretty much what I'm
  • 00:27:15
    able to also do in the live markets
  • 00:27:17
    again that is pretty much reality and
  • 00:27:19
    again like I have a lot of these so for
  • 00:27:21
    example there is a recent strategy that
  • 00:27:23
    I was back testing so the session
  • 00:27:25
    strategy that is for EU and and then I
  • 00:27:27
    collected the Mo right again and you can
  • 00:27:28
    see exactly the same thing here I was
  • 00:27:30
    actually uh it's uh it's a strategy
  • 00:27:32
    based on the asan Range so I was
  • 00:27:33
    measuring their Asian range in terms of
  • 00:27:35
    Pips how many it was trending stop- loss
  • 00:27:37
    size daily open the targets that I was
  • 00:27:40
    uh looking for again feel free to add
  • 00:27:42
    things here if you get used to notion
  • 00:27:43
    you can add things that you want to
  • 00:27:45
    measure and again after all the testing
  • 00:27:47
    85 trades uh medium stop loss of 7even
  • 00:27:49
    Pips 68% return and again you're going
  • 00:27:52
    to get and you can see like the
  • 00:27:53
    potential was 288 per. so again it makes
  • 00:27:57
    me think okay what can I do better in
  • 00:27:58
    order to like catch a little bit more R
  • 00:28:00
    right and then here you can see like 34
  • 00:28:02
    wins 29 losses 21 break evens you can
  • 00:28:05
    calculate the win rate and stuff like
  • 00:28:06
    this so as you populate your charts
  • 00:28:08
    they're going to look like this and this
  • 00:28:09
    is what I call statistical Edge and
  • 00:28:12
    actually having the backest so for any
  • 00:28:14
    strategy that I uh that I share that I
  • 00:28:16
    actually work on I have the back test
  • 00:28:18
    and then I and then I for example roll
  • 00:28:20
    it out to the community right so again
  • 00:28:21
    there is one of our recent strategy on
  • 00:28:23
    the S&P 500 again I have the entry I
  • 00:28:25
    have the 50-minute time frame I have 51
  • 00:28:27
    trades and again 50% win rate 33% return
  • 00:28:31
    not bad this is something worth
  • 00:28:32
    exploring and again always go through
  • 00:28:34
    that Backus so this is pretty much
  • 00:28:36
    notion and again once again you are
  • 00:28:38
    going to take note of like of all the
  • 00:28:39
    pictures like for example if you click
  • 00:28:41
    on on these things you can just put a
  • 00:28:43
    link right and then of course that is
  • 00:28:44
    going to that is going to offer you uh
  • 00:28:46
    the link right of the picture that you
  • 00:28:48
    took make sure to take pictures because
  • 00:28:50
    if you don't well you're not going to
  • 00:28:51
    have the date so with that being said
  • 00:28:53
    this is how you do it on notion again
  • 00:28:55
    you just got to go back on U again again
  • 00:28:58
    you just got to go back on trading view
  • 00:29:00
    go through very carefully exactly what
  • 00:29:02
    you're doing on a daily basis figure out
  • 00:29:04
    the entry again if you want to enter on
  • 00:29:06
    the one minute time frame you draw your
  • 00:29:08
    supply Zone you go to the one minute
  • 00:29:09
    time frame and you wait for it okay you
  • 00:29:11
    don't just come in right there and just
  • 00:29:12
    play canos like oh the market moved or
  • 00:29:14
    for example if the market massively
  • 00:29:16
    moves lower right or let's say you took
  • 00:29:17
    a trade from here stop loss above and
  • 00:29:19
    the market hit your stop loss ah well I
  • 00:29:21
    wouldn't take this trade no you took it
  • 00:29:23
    log it in okay so with that being said
  • 00:29:25
    this is training view let's explore the
  • 00:29:27
    other option which I think it's actually
  • 00:29:29
    much better now if you wish to invest in
  • 00:29:31
    yourself and you're in your trading I
  • 00:29:33
    would definitely suggest you consider
  • 00:29:35
    getting the FX replay software I really
  • 00:29:38
    love this the platform is super nice
  • 00:29:41
    it's easy to use and it also uses our
  • 00:29:43
    favorite trading your charts but this
  • 00:29:44
    time you get not unlimited data you can
  • 00:29:46
    get like to 2020 2020 I believe but also
  • 00:29:49
    this I what I really love about this
  • 00:29:51
    software is that it actually keeps you
  • 00:29:53
    accountable if you don't take a trade
  • 00:29:55
    and if you don't set your order and if
  • 00:29:56
    you not if you don't don't executing it
  • 00:29:58
    you cannot go back in time right you
  • 00:30:00
    simply miss the trade or you take the
  • 00:30:02
    loss everything is logged in and you
  • 00:30:04
    really have to get into the zone you
  • 00:30:06
    really have to get intentional with your
  • 00:30:07
    testing because this is as Clos you can
  • 00:30:09
    get to live performance you execute if
  • 00:30:12
    the trade misses you you don't take it
  • 00:30:14
    if the trade hits your stop loss it's a
  • 00:30:15
    stop- loss if the trade misses your take
  • 00:30:17
    profit you cannot cheat and say oh well
  • 00:30:19
    I would have taken it here no so I
  • 00:30:21
    really love the software uh it was
  • 00:30:23
    actually a Community member that suggest
  • 00:30:25
    that I get it so we can do some uh
  • 00:30:26
    Community back testing station and I got
  • 00:30:28
    it and I also affiliate it with the FX
  • 00:30:30
    Replay for a 15% discount so if you want
  • 00:30:32
    to get this software make sure to use
  • 00:30:34
    the code trading fanatic 15 it's going
  • 00:30:36
    to give you 50% off from the from the
  • 00:30:38
    subscription definitely a great software
  • 00:30:40
    I'm also affiliated with them because
  • 00:30:42
    again I love them now um the only thing
  • 00:30:44
    that I would suggest you do here is to
  • 00:30:45
    also use the notion template uh because
  • 00:30:48
    what FX replay doesn't have is they
  • 00:30:49
    don't have like place to take a
  • 00:30:51
    screenshot so again you you definitely
  • 00:30:53
    test out but still you have to take
  • 00:30:54
    screenshots exactly at the same way I
  • 00:30:57
    showed you on how to do on trading okay
  • 00:30:58
    so let me actually show you how it works
  • 00:31:00
    now first this is the dashboard uh you
  • 00:31:02
    can create a strategy right so let's
  • 00:31:04
    just say we're going to do a test
  • 00:31:05
    strategy save so what this helps you do
  • 00:31:07
    is again if you have like u a strategy
  • 00:31:09
    want to back this for example you can
  • 00:31:11
    say I have two strategies right there
  • 00:31:12
    it's going to give you all the details
  • 00:31:14
    about that strategy but then you have to
  • 00:31:15
    create a back testing session again
  • 00:31:17
    account balance it's just just 10,000
  • 00:31:19
    pairs you have all the instruments you
  • 00:31:21
    want right so let's just say Euro EUR
  • 00:31:23
    USD there is Euro USD and now here you
  • 00:31:25
    have to pick your start date again you
  • 00:31:27
    can go back as far as 2020 I wouldn't
  • 00:31:29
    suggest you go back 3 years ago so let's
  • 00:31:31
    just start like from 2023 January let's
  • 00:31:34
    say we start with like um the 1st of
  • 00:31:35
    January so that is just you get a whole
  • 00:31:37
    year of data and the end date is pretty
  • 00:31:39
    much going to be today the strategy you
  • 00:31:41
    link this session to the strategy you
  • 00:31:43
    want to test name maybe you put in some
  • 00:31:45
    name description smooth candles I do
  • 00:31:47
    enable and when you click save it
  • 00:31:48
    creates your session you click here and
  • 00:31:50
    now you are into the live markets
  • 00:31:53
    exactly like the live markets now um you
  • 00:31:55
    have to I have some drawings right right
  • 00:31:57
    there you have to first of all play a
  • 00:31:59
    little bit with your trading view charts
  • 00:32:00
    because first you're going to have like
  • 00:32:01
    the usual trading view charts so again
  • 00:32:03
    check my tutorial on trading view um on
  • 00:32:05
    the trading view colors and everything
  • 00:32:07
    so again do your colors do your status
  • 00:32:09
    lines scales background make your tools
  • 00:32:12
    okay so do you actually feel at home
  • 00:32:14
    like you're back testing and again qu
  • 00:32:16
    the time frame you start doing
  • 00:32:17
    everything again feel free to like do
  • 00:32:19
    some uh session indicators like some any
  • 00:32:21
    time zone indicators I use the Silver
  • 00:32:23
    Bullet because it shows the London
  • 00:32:24
    session it has like indicators here it
  • 00:32:26
    has a lot of and I love it now again you
  • 00:32:29
    just do exactly the same thing you would
  • 00:32:30
    do in the live Mark qu structure break
  • 00:32:32
    up daily demand zone right there you go
  • 00:32:34
    with the templates everything then you
  • 00:32:36
    go to the 50 minute time frame right and
  • 00:32:37
    then what I really like about this is
  • 00:32:39
    that it has this goto section and then I
  • 00:32:41
    just click uh go to next London session
  • 00:32:42
    and it just Sprints the Asian range and
  • 00:32:44
    goes back to the London station so again
  • 00:32:46
    we're bullish on the 4y we took out the
  • 00:32:47
    Asian low so right now we can look for a
  • 00:32:49
    potential long trade again you can go to
  • 00:32:51
    the 5 minute time frame again depending
  • 00:32:52
    on what you're going to be trading and
  • 00:32:54
    the beauty of this is that you cannot
  • 00:32:55
    cheat right now you have have to be
  • 00:32:57
    looking for that for example Trend
  • 00:32:58
    change but you cannot cheat so there is
  • 00:33:00
    the trend change now it occurred here
  • 00:33:02
    now you have to decide what you're going
  • 00:33:04
    to do at this moment so are you going to
  • 00:33:05
    enter from here with a stop loss below
  • 00:33:07
    there are you going to be looking for a
  • 00:33:08
    pullback because that determines how
  • 00:33:10
    you're going to enter so let's say we're
  • 00:33:11
    going to be entering with a pullback
  • 00:33:12
    right and then you have to also pick
  • 00:33:14
    your TP let's say we're going to Target
  • 00:33:15
    2 R right there at the previous daily
  • 00:33:17
    high now you have to click on the two
  • 00:33:19
    and you place order right there and that
  • 00:33:22
    is the beauty of the software because
  • 00:33:23
    you're actually taking trades risk per
  • 00:33:25
    trade from the current balance position
  • 00:33:27
    size entry take profit stop loss
  • 00:33:29
    everything now here you just got to be
  • 00:33:31
    careful if you're entering with a limit
  • 00:33:32
    order you have to change this to limit
  • 00:33:34
    right but if you're entering exactly
  • 00:33:35
    from the current price you have to click
  • 00:33:37
    Mark again be careful and now if you
  • 00:33:38
    click save this sets an order so if the
  • 00:33:41
    market goes without us right now we're
  • 00:33:42
    not in the trade and if the market hits
  • 00:33:44
    stop loss we take the stop loss there is
  • 00:33:46
    no way to cheat and to lie the system so
  • 00:33:48
    there we go we actually got triggered
  • 00:33:50
    now we are in the trade and you have to
  • 00:33:51
    manage it you can move your stop- loss
  • 00:33:53
    to break even you can move your take
  • 00:33:55
    profit if you want to enlarge it you can
  • 00:33:56
    also if you want want close partials you
  • 00:33:58
    click close position and you can close
  • 00:34:00
    partials it is incredible right and then
  • 00:34:01
    you just click play right and the market
  • 00:34:03
    goes let's see what it does okay we're
  • 00:34:05
    trading on the second of J which is not
  • 00:34:06
    a good which is not a good uh place to
  • 00:34:08
    trade but again like let's just play
  • 00:34:10
    forward and again you manage your trade
  • 00:34:12
    boom boom very chop okay we hit stop and
  • 00:34:14
    right now there is no way back you're
  • 00:34:16
    are down 1% that's it you cannot say
  • 00:34:19
    well I would have taken a break even on
  • 00:34:21
    that trade no you did not because if you
  • 00:34:22
    would have you would have moved your
  • 00:34:23
    stop loss to break even okay and now
  • 00:34:25
    what you simply do is okay I took the
  • 00:34:26
    stop you again click here copy image and
  • 00:34:29
    you mark this up you take note of this
  • 00:34:31
    trade in your notion template and then
  • 00:34:33
    again what I simply like to do is if I'm
  • 00:34:35
    just trading London session I'd like to
  • 00:34:36
    go back to the next London session okay
  • 00:34:38
    so again still here we're still bullish
  • 00:34:40
    so let's try to take another long you
  • 00:34:42
    wait start pressing - minute candles and
  • 00:34:44
    uh yeah the market just massively dumped
  • 00:34:47
    and again no trade the market just dumps
  • 00:34:49
    right now if if you don't want to take
  • 00:34:50
    any trades then you just don't take a
  • 00:34:52
    trade and again you go to the next Lon
  • 00:34:53
    session but now again follow with your
  • 00:34:55
    hard time frames again you delete the
  • 00:34:57
    old stuff make sure to take note of it
  • 00:34:59
    in notion we have a 4ly trend change
  • 00:35:01
    down there we have a brand new 4ly
  • 00:35:03
    Supply the market is right now at a
  • 00:35:05
    lower low so we can expect potentially
  • 00:35:07
    some Longs but we can also expect
  • 00:35:08
    continuations lower okay the market is
  • 00:35:10
    still traveling towards the 50% a lot of
  • 00:35:12
    imbalance and you can see it's like
  • 00:35:14
    you're actually really trading you have
  • 00:35:16
    to wait for it you cannot just press
  • 00:35:17
    forward because here you cannot go back
  • 00:35:19
    let's say I want to actually go back and
  • 00:35:21
    take a short here you cannot go back
  • 00:35:23
    there is no way to go back and actually
  • 00:35:25
    pretend you took the trade if you missed
  • 00:35:26
    the trade you missed it forever right
  • 00:35:28
    and then again you have to be really
  • 00:35:29
    careful right so for example in this
  • 00:35:31
    case the Market opens manipulates okay
  • 00:35:32
    the market very nicely pushed up a field
  • 00:35:34
    imbalance I want to take a short but
  • 00:35:35
    then maybe you go to the 5 minute time
  • 00:35:37
    from here I want to wait for let's say
  • 00:35:39
    for a trend change there is the trend
  • 00:35:40
    change so am I going to enter from here
  • 00:35:42
    exactly or am I going to be looking for
  • 00:35:43
    some sort of a pullback well let's say I
  • 00:35:45
    enter from here and I'm going to Target
  • 00:35:46
    the Asian low so click on your two place
  • 00:35:49
    order then I'm just going to do Market
  • 00:35:51
    you click save and now you are in the
  • 00:35:53
    trade there is no coming back if it hits
  • 00:35:55
    stop loss it hits stop loss if maybe it
  • 00:35:56
    gives gives you a little pullback to
  • 00:35:57
    take a better entry you can scale in but
  • 00:35:59
    you cannot change your entry because
  • 00:36:01
    you're already in right and then you
  • 00:36:02
    just allow for the market to play out
  • 00:36:04
    and see what happens again I'm trading
  • 00:36:05
    again this is not a back testing session
  • 00:36:07
    right there because we're trading at the
  • 00:36:08
    worst time there is we're Ste in the
  • 00:36:10
    trade right you can see we're Ste in the
  • 00:36:11
    trade so right now you can choose to
  • 00:36:13
    manage it you can choose to go break
  • 00:36:14
    even you can choose to close your trade
  • 00:36:16
    because you think the market might
  • 00:36:17
    reverse you can you can you are just
  • 00:36:19
    here making decisions right and again
  • 00:36:21
    you just play Let's see what happens
  • 00:36:22
    today okay um wait a little bit we take
  • 00:36:25
    out the asan high I'm looking for I'm
  • 00:36:27
    still bearish and again you look for
  • 00:36:28
    that Trend change there is the trend
  • 00:36:30
    change now if you decide to take a short
  • 00:36:31
    from here you decide how to take it are
  • 00:36:33
    you going to take it with a limit here
  • 00:36:35
    and a stop loss above and then of course
  • 00:36:36
    you let's say we target that same same
  • 00:36:38
    thing let's see you click here place
  • 00:36:40
    order then you click on a limit because
  • 00:36:42
    we're setting a limit right there and
  • 00:36:43
    then you just click play there you go
  • 00:36:45
    we're into the trade stop loss above and
  • 00:36:47
    you just allow it to play out W nice and
  • 00:36:49
    again like in this case you can decide
  • 00:36:51
    to close partials so you simply click
  • 00:36:53
    here on the X based on the trade so I'm
  • 00:36:55
    not sure how we actually because we took
  • 00:36:57
    the TR the two trades from the same
  • 00:36:58
    direction so I'm not sure how it
  • 00:37:00
    separates them but if you click here you
  • 00:37:02
    can choose how many partials to close
  • 00:37:04
    like let's say I want to close 80%
  • 00:37:05
    partials you click save right and now
  • 00:37:07
    80% is closed and then of course you
  • 00:37:09
    just play there is our take profit and
  • 00:37:11
    everything is closed right then again
  • 00:37:13
    you click on the trade copy image you go
  • 00:37:15
    back to the voyage actually explain okay
  • 00:37:17
    the market was at a lower high uh it I
  • 00:37:19
    expected lower downside so again this is
  • 00:37:21
    why I took this trade with a 50-minute
  • 00:37:22
    trend change with a limit from The
  • 00:37:23
    50-minute Zone take notes okay and now
  • 00:37:26
    as you go through a lot of this trade
  • 00:37:28
    again this is not a back testing session
  • 00:37:29
    I'm not here to teach you a strategy or
  • 00:37:31
    anything else let me know if you would
  • 00:37:32
    like me to do that now here under the
  • 00:37:34
    strategy you're going to get all of your
  • 00:37:35
    insights so if you click here you're
  • 00:37:37
    going to see uh your total p&l you're
  • 00:37:39
    going to see your win rate you're going
  • 00:37:40
    to see the total trades your average R
  • 00:37:42
    to reward your max Roost to reward on
  • 00:37:43
    your trades ideal average Max ideal
  • 00:37:46
    again I'm still kind of exploring it but
  • 00:37:47
    you get all of these stats again you can
  • 00:37:50
    see loss streak Max loss streak duration
  • 00:37:52
    of your trade your average loss your
  • 00:37:54
    average win how many win streak you have
  • 00:37:56
    exact the things that I told you to take
  • 00:37:57
    note of it already offers it what did I
  • 00:37:59
    tell you about the days right as you get
  • 00:38:01
    100 trades I promise you you're going to
  • 00:38:03
    see which days work the best you
  • 00:38:04
    actually see here the profits you make
  • 00:38:06
    per day right and if I actually show you
  • 00:38:08
    let's say um uh some stuff that I'm back
  • 00:38:10
    testing let's say this for example when
  • 00:38:12
    you click you get more data you see your
  • 00:38:14
    Equity curve you see how much percentage
  • 00:38:16
    you've had you see your win rate you see
  • 00:38:18
    again in this case you can see the rest
  • 00:38:19
    reward I take the average is 2.5 well
  • 00:38:22
    I'm getting like the max I'm getting is
  • 00:38:24
    six so I can definitely look to increase
  • 00:38:26
    my risk to reward right Max losing
  • 00:38:28
    streak six trades so I know that I'm
  • 00:38:29
    when I'm trading this uh setup live I
  • 00:38:32
    know that I can get six traes loses in a
  • 00:38:34
    row and I know that after five uh
  • 00:38:36
    winners in a row I can potentially get
  • 00:38:38
    some losses here you can see by day so
  • 00:38:40
    what I see is that Monday is one of my
  • 00:38:42
    most profitable days right Wednesday
  • 00:38:44
    50/50 right Friday Also 50/50 so what I
  • 00:38:47
    consider trading Wednesday and Friday
  • 00:38:49
    probably not here again you can see the
  • 00:38:51
    total performance per month here you can
  • 00:38:53
    see every day that you took and the
  • 00:38:55
    result during that day you you can see
  • 00:38:56
    like for example in in May I only took
  • 00:38:59
    three trades and again this makes me
  • 00:39:01
    think long term because if I have like
  • 00:39:03
    two to three weeks without a trade I am
  • 00:39:05
    calm and I'm not going to rush into
  • 00:39:07
    doing anything stupid so that is FX
  • 00:39:09
    replay definitely uh recommend getting
  • 00:39:12
    this because this is the closest you can
  • 00:39:14
    get to real trading with real execution
  • 00:39:16
    and with real stats so make sure you do
  • 00:39:19
    that all right Fanatics I really hope
  • 00:39:21
    you enjoyed this video make sure to let
  • 00:39:22
    me know down in the comments if you did
  • 00:39:24
    let me know what you actually learned
  • 00:39:26
    from it and what is your plan of action
  • 00:39:28
    going forward with back testing forward
  • 00:39:30
    testing and also Gathering your data hit
  • 00:39:33
    the thumbs up in order to help uh spread
  • 00:39:34
    this video out and make sure to grab
  • 00:39:36
    your nocean template down in the
  • 00:39:38
    description and make sure to join FX
  • 00:39:40
    replay with the code trading fanatic 15
  • 00:39:42
    so you can get some discount and of
  • 00:39:44
    course take your back testing to the
  • 00:39:45
    next level of course if you need
  • 00:39:47
    anything else let me know down in the
  • 00:39:48
    comments for another topic that you want
  • 00:39:50
    me to talk about and again I love you
  • 00:39:52
    guys and talk to you in the next one
  • 00:39:54
    bye-bye
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