Quote from: Mpamaegbu on April 15, 2023, 08:17:13 AM

Quote from: EarnOnVictor on April 15, 2023, 07:38:05 AM

#Warning: Backtesting doesn't often work for indicators, they will trick you, forwardtesting is better in this regard. But for strategies like Price action, Trendline diagram, Fibonacci retracement and breakout and Elliot wave theory, it will work, but they have to be done manually to be accurate.

Perhaps you should've added that it doesn't work with "lagging" indicators or indicators that repaint and not that backtesting doesn't actually work at all. How does one guage the present and future if one doesn't review the past? It's not possible. This is where backtesting comes in. For me, I started with those MAs, Fibs, MACD, until I discovered they lag. They reflect price after price has moved from that point, and not before it happens. Now I rely more on leading indicators of S&R, Trendlines and Pivots. They lead price action. In conclusion, anyone who wants to take trading seriously should backrest their strategies before hand.

It baffled me when those that need correction like you would be correcting others that need to lecture them. If you must know, I major in trading and I've taught and mentored many over the years. I even have my books about trading, so I don't blab and am not like those that are just trading.

To make it worse, you supported the most confusing "leading indicators" that only dance quickly to the change in price, how naive are you? Also, as a matter of correction, Trendline and Pivot points are not indicators, they are support and resistance levels that translate into strategies. They can only be indicators if you code them to be one, so you need to learn more about trading.

Conclusively, you must know, whether it's a leading or lagging or repainting indicator, they are bad for backtesting, all indicators would fail you because they move relative to the market price. However, my supported strategies (Price action, Trendline, Fibo and Elliot wave) which you wrongly debunked don't. You can depend on them for your historical studies and backtesting. This, I've done many times, so it's practical to me and strange that anyone could state otherwise.