Does Back Testing a Trading Strategy Work?

[@ukspreadbetting]

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[@JazevoAudiosurf]

backtesting should work on low time frames like 1-5 minutes because the market condition changes very slowly. the argument that backtesting doesnt work means it's simply overfitting past data. if you prevent overfitting by too much parameter tweaking and e.g. use indicators, backtesting becomes the same as the brain learning the stock market but minus emotions.

[@gamingvideos1236]

I think while back testing people backtest it on stocks that already got up or forex pair that already got up. So they have a future value in their mind they have already narrowed down it using future price so they get excellent results. While starting backtesting you should first get information only until the point from which you start backtesting. Also backtest on multiple pairs or stock fitting your setup with information only available at the start of backtesting period.

[@rikirex2162]

what this gentleman doesn't want to say is that in back testing the market doesn't see you

[@Drumkielvey]

Your dead right what you said, i got caught out on the proplem of curve fitting.

[@OneCreator87]

Just use out of sample testing.

[@beetlebayley5237]

Either works or it does'nt.......