Forex guide
How to Backtest a Forex Strategy
Backtesting should try to disprove a strategy before you trust it, not search for settings that make the historical chart look perfect.
Risk first. Forex, CFDs, copy trading, signals and automated strategies can all lose money. Performance claims and backtests do not guarantee future results. Verify the legal entity, product availability and rules that apply in your country before funding an account.
Write rules first
Define entry, exit, stop, sizing, time filters and market universe before looking at the final result.
Model friction
Include realistic spread, commission, financing and slippage assumptions. A small theoretical edge can disappear after costs.
Avoid overfitting
Separate development and validation periods, test multiple market regimes and prefer robust parameter ranges over one perfect setting.
Use the guide in context
Compare the strategy or tool with broker costs, platform support, regulation and country availability before acting.