Daily Forex Signal 30 OCT 2009 released 02.07 GMT

D20P BUY B GBP/USD 1.6535

take profit 1.6555

stoploss 1.6505

DAILY20PIP.COM ADVICE : BULLISH MARKET AHEAD

SIGNAL VALID FROM 6.00 GMT - 18.00 GMT

system option : add spread on buy order

RESULT WIN

How Far Should we Backtest a Forex System?

Some traders asked me for how long one should backtest a trading system. There’s no easy answer, and there are a few factors that you need to consider when determining the period for backtesting your trading system.

It’s not important how long you backtest a trading system, it’s important that you receive enough trades to make statistically valid data. If your trading system generates 2 trades per day, or 300 trades per year, then a year of testing gives you enough data to make reliable decission. But if your trading system generates only 2 trades per month or 24 trades per year, then you should backtest a couple of years to receive reliable data.