Backtesting applies your rules to historical charts. Forward testing runs them live on demo.
Manual vs automated
- Manual: TradingView's Bar Replay, candle by candle. Slow but trains your eye.
- Automated: code it and run MT5's Strategy Tester. Fast, but only as good as the code.
Rules for a test you can trust
- Write the rules first. No judgement calls mid-test.
- Get 100+ trades across different conditions.
- Include spreads, commission and slippage.
- Test on data you didn't use to build the strategy.
Wick says
Tweak the settings until the backtest is perfect, and you've built a strategy for last year's market. That's curve fitting, and it fails live.
Key takeaways
- Fixed rules, big sample, real costs.
- Out-of-sample testing catches curve fitting.
- Forward test 1–3 months before going live.