Tradeindicators
Martin Momentum Strategy - How I Do BacktestingHello Traders,
In this video I go over how I back test and what my risk is per trade!
I NEVER risk more than 2% per trade!! No matter if I’m back testing or live trading.
WHY….? Well because my trading plan and risk management tells me I’m only allowed to risk 2% per trade. I follow my trading plan to a “T” and suggest you do the same!
If you don’t have a trading plan you NEED one! Just like the Martin Momentum Strategy has rules you NEED to follow in order to be successful, your trading plan has rules you NEED to follow in order for you to be profitable.
If your trading plan says you can risk 4%, 5% or 20% per trade then that’s your plan! I will go on record and say I don’t agree with your method however if that’s working for you then great!
A trading plan gives you clear instructions on the do’s and don’ts when trading. It keeps you grounded when your in a losing streak or even a winning streak. Its meant to be used as a road map to where you are and where you want to go! I personally call it my GPS for trading! :)
HOW I BACK TEST!
I go to where is says “Go to” down in the bottom left of the chart and I select or enter the date I want to go back to. Then I click reply select the candle I want to start on and boom I’m now replying the market as if it’s live!
If you have any further questions please feel free to contact me. I hope this was helpful!
Make it a Great Day & Happy Trading!
~ SpiffyPips ~
This information is not a recommendation to buy or sell. It is to be used for educational and entertainment purposes only.
