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Originally Posted by rufffen
backtesting doesn't work, period. You have to account for slippage, server outage, and many other factors. Besides, MT4 platform is unstable, and the free data feed you use for backtesting is not reliable.
Just some factors. Also consider a simple cross-over MA system with backtesting, it's real cool with backtests, however try to trade it naked live, and you will see what I mean.
CatFX is profitable, I could see that, I use it for confirmation of short-term trends and retracements.
Interesting idea about pyramiding though, would be interesting to watch how that idea evolves with this system.
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I agree, backtest is not going to tell you if a system will perform well in the future, but if you do it it is a great learning tool to get the grip of the system and shorten the learning curve, since as I also thought that this was a good system, didn t want to spend 6 months trading a demo.
But backtesting something by yourself give you the idea that is the system is for you or not, because in the end, that is it all about, the system could be great but if it doesn t fit your trading style you are done.
AThis way we reached the optimum level of lots to trade starting with a 5 k account, look at that and you will see that it starts trading only 2 micro lots per scale (8 micro lots). it is not a great risk, and in the end compounding you get to 118k, you have the foundations there for money management rule.
So all and all, i don t regret spending some time backtesting something that i think could yield me great profits.
And as i said before, all backtest should be taken with a grain of salt.
Regards.