Backtesting is the phase that must be traversed a trader. Backtesting is the test of a trading system using past data history. By conducting a backtesting expected traders can find out the weaknesses and strengths of a trading system so that it could be a consideration whether the systems are suitable for running. By conducting a backtesting makes us different to a gambler. Because the data is valid based on backtesting while gamblers use good luck. Of course you're a genuine traders instead?
Backtesting is very necessary because it helps the trader to determine when the entry or exit. By knowing when the entry and exit points then expected the trader can calculate odds and money management. And when confronted with the real market trader he doesn't hesitate with its own trading system.Backtesting can also increase the confidence of a trader. Because he was convinced by his trading system after he does backtesting.
There are two kinds of ways to do that is with backtesting manual way or use the EA (Expert Advisor). There are advantages and disadvantages of each. For the manual way would of course be time consuming, because we have to test one by one. But more efficient because we do not need to order EA. Whereas EA have advantages over time-saving and efficient, but we must reserve in advance or EA we are able to make it on their own. Makes its own EA, required special programming skills.
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Why You Must Bactesting
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