25m 33s: Lenght

This is part of a series of blogs on Forex Testing. The previous one can be found at http://expert-4x.com/the-expert4x-forex-system-testing-process-to-financial-s... Whenever I have a new Forex trading system I want to evaluate I use High-Level Forex system testing first. The advantages are that you can immediately get an option of the trading technique. So before you even do more detailed testing or start demo trading or start live trading you can get a feel of whether you want to store the system for the future or test it any further right away. So what I would do with a new is: Study, learn and understand the Forex system 100% as described in the system documentation. If I have any uncertainties I would try to clear them up to make sure I am trading the system as it designer has intended. I would then load all the indicators and other tools the system uses into my normal trading charts using the most appropriate currency and timeframe. I would then go back on in the charts a few months and select a favourable market to start identifying transaction based on the transactions entry, exit, stop and target rules. I would identify 20 to 30 such transactions. A favourable market is one where the market is in a phase that will give the system the best results. If it is a trending system I would use a trending market or if it is a retracement or bounce type of system I would use a sideways market. Then I would add up the positive transactions and the negative transactions in number to see if the technique identifies a reasonable amount of positive transactions. If the number of positive transactions are not high I would do any combination of the following: I would test another 30 transactions to see if the system improves I would see if I can filter the negative transactions out using a time of day (don't trade in the Asian market ) filter. I would try to change the indicator settings to give more favourable entries and less whipsaws. I would see if there is some filter that can be added to filter out negative transactions. I would try the system in other timeframes I would try the system using different currencies. I would consider different stop sizes. I would consider changing the direction of the trades if the stops and equal to the targets. I would see if there was another system I could combine this one with to make them both more profitable. Adding the Moving average crossover system to the trendline violation system is an example of this. Sounds like a lot of work but the more you do it the faster it goes. All this should not take more than a few hours and at the end I will make a decision on whether to move to the next step which is detailed testing. I would only move to this step if the high-level testing appears to be giving positive results. Otherwise I will save the system for the future. High-level Forex system testing using your Brokers Forex trading charts will save you considerable time and you will learn a lot about your system in the process. The Next blog posting on this topic can be found at http://expert-4x.com/keep-and-never-discard-a-forex-system-or-forex-technique For more information on High level Forex System Testing go to http://expert-4x.com/ This video has been created by http://expert4x.com to support the Forex Products and service available on their website. Expert4x Forex offers you many of these Forex trading money making solutions: Beginner introductions, manual trading techniques, Automated trading, using specialized indicators, subscribing to alerts, etc. Expert4x also supplies many FREE trading tools, magazines, movies, courses etc. More information can be obtained from the group websites: http://doubleinadayforex.com http://longcandleforextrading.com http://forextradeoftheday.com http://meetforextraders.com http://forextrading-alerts.com http://expert-4x.com