By www.candlestickforums.com Back TestingTrading Results
There are two means of    back testing trading results. One is to look atresults and the other is to look at process. Audi...
Traders will keep track        of all stock  trading, commoditiestrading, options trading,   and futures trading.        w...
The result will be a  list of trades thatwere profitable and a  list of trades that       were not.      www.candlestickfo...
However, aside from knowing where the trader made of lostmoney, a results audit  is not very useful.      www.candlestickf...
A process audit will           show stocktraders, commodities traders,    the options trader, and   futures traders where ...
A process audit is whenthe trader goes back and examines whether he or she is managing trading practices efficiently and  ...
A process audit is not justfollowing a path from trade to  trade. It is a critical look at     each step in choosing which...
and futures markets to trade,and which equity orderivativecontracts to trade. It is a stepby step comparison of trading   ...
Back testing trading resultsby means of a process auditwill help the trader perfect his     or her use of technical       ...
The key features or   steps in using aprocess audit for backtesting trading results    are as follows:       www.candlesti...
Goal, process, result, review,   and improvement. The  obvious goal is to make     money and reduce investment risk by fin...
When the trader has found theseopportunities he or     she will     www.candlestickforums.com
want to attack the job oftrading with a well throughout strategy, keep track of     results, and modify  strategy or execu...
Back testing trading results comes down totask definition, objective definition, and a tally of          results.        w...
What procedures arenecessary and in what   sequence? What  knowledge base isneeded and how muchpractice is necessary?     ...
In the end, effective    management of   trading practices  leads to intended        results.      www.candlestickforums.com
In the end there can be     a fair amount of“homework” involved in   successful trading.       www.candlestickforums.com
However, the trader who does his or her“homework” is in good     company.      www.candlestickforums.com
Rice traders in ancient          Japan developed Candlestick          chartanalysis and Candlestick     trading tactics.  ...
This took years ofpatient observation and  recording of trading         results.       www.candlestickforums.com
Today’s trader has the  advantage of a readymade system for technical    analysis of price      movement.        www.candl...
The job of today’s trader  is to learn the process of trading stocks, trading   commodities, tradingfutures or trading opt...
For example, if he or sheis new at trading options a  course such as options   training with Stephen     Bigelow can be an...
Routinely back testing  trading results will helpthe trader reverse losses   and improve gains in the equity market where ...
Repeated review oftrading process will help the trader get rid of theeternal bugaboos of the trader, fear and greed.      ...
The psychology oftrading can defeat the  best laid plans andpracticed procedures.      www.candlestickforums.com
A frequent and honest review of what you aredoing and why can lead to steady improvement in      trading results.        w...
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Back Testing Trading Results

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Back Testing Trading Results

There are two means of back testing trading results. One is to look at results and the other is to look at process. Auditing results is obvious. Traders will keep track of all stock trading, commodities trading, options trading, and futures trading. The result will be a list of trades that were profitable and a list of trades that were not. However, aside from knowing where the trader made of lost money, a results audit is not very useful. A process audit will show stock traders, commodities traders, the options trader, and futures traders where the problems lie in back testing trading results. A process audit is when the trader goes back and examines whether he or she is managing trading practices efficiently and effectively. A process audit is not just following a path from trade to trade. It is a critical look at each step in choosing which stock market, options markets, commodities markets, and futures markets to trade, and which equity or derivative contracts to trade. It is a step by step comparison of trading practices versus trading strategy. Back testing trading results by means of a process audit will help the trader perfect his or her use of technical analysis tools such as Candlestick pattern formations in order to increase trading profits.

The key features or steps in using a process audit for back testing trading results are as follows: Goal, process, result, review, and improvement. The obvious goal is to make money and reduce investment risk by finding profitable trading opportunities. When the trader has found these opportunities he or she will want to attack the job of trading with a well through out strategy, keep track of results, and modify strategy or execution as needed. Back testing trading results comes down to task definition, objective definition, and a tally of results. What procedures are necessary and in what sequence? What knowledge base is needed and how much practice is necessary? In the end, effective management of trading practices leads to intended results. In the end there can be a fair amount of “homework” involved in successful trading. However, the trader who does his or her “homework” is in good company. Rice traders in ancient Japan developed Candlestick chart analysis and Candlestick trading tactics. This took years of patient observation and recording of trading results. Today’s trader has the advantage of a ready made system for technical analysis of price movement. The job of today’s trader is to learn the process of trading stocks, trading commodities, trading futures or trading options. For example, if he or she is new at trading options a course such as options training with Stephen Bigelow can be an excellent choice.

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Back Testing Trading Results

  1. 1. By www.candlestickforums.com Back TestingTrading Results
  2. 2. There are two means of back testing trading results. One is to look atresults and the other is to look at process. Auditing results is obvious. www.candlestickforums.com
  3. 3. Traders will keep track of all stock trading, commoditiestrading, options trading, and futures trading. www.candlestickforums.com
  4. 4. The result will be a list of trades thatwere profitable and a list of trades that were not. www.candlestickforums.com
  5. 5. However, aside from knowing where the trader made of lostmoney, a results audit is not very useful. www.candlestickforums.com
  6. 6. A process audit will show stocktraders, commodities traders, the options trader, and futures traders where the problems lie in back testing trading results. www.candlestickforums.com
  7. 7. A process audit is whenthe trader goes back and examines whether he or she is managing trading practices efficiently and effectively. www.candlestickforums.com
  8. 8. A process audit is not justfollowing a path from trade to trade. It is a critical look at each step in choosing which stock market, options markets, commodities markets, www.candlestickforums.com
  9. 9. and futures markets to trade,and which equity orderivativecontracts to trade. It is a stepby step comparison of trading practices versustrading strategy. www.candlestickforums.com
  10. 10. Back testing trading resultsby means of a process auditwill help the trader perfect his or her use of technical analysis tools such as Candlestick pattern formations in order to increase trading profits. www.candlestickforums.com
  11. 11. The key features or steps in using aprocess audit for backtesting trading results are as follows: www.candlestickforums.com
  12. 12. Goal, process, result, review, and improvement. The obvious goal is to make money and reduce investment risk by finding profitable trading opportunities. www.candlestickforums.com
  13. 13. When the trader has found theseopportunities he or she will www.candlestickforums.com
  14. 14. want to attack the job oftrading with a well throughout strategy, keep track of results, and modify strategy or execution as needed. www.candlestickforums.com
  15. 15. Back testing trading results comes down totask definition, objective definition, and a tally of results. www.candlestickforums.com
  16. 16. What procedures arenecessary and in what sequence? What knowledge base isneeded and how muchpractice is necessary? www.candlestickforums.com
  17. 17. In the end, effective management of trading practices leads to intended results. www.candlestickforums.com
  18. 18. In the end there can be a fair amount of“homework” involved in successful trading. www.candlestickforums.com
  19. 19. However, the trader who does his or her“homework” is in good company. www.candlestickforums.com
  20. 20. Rice traders in ancient Japan developed Candlestick chartanalysis and Candlestick trading tactics. www.candlestickforums.com
  21. 21. This took years ofpatient observation and recording of trading results. www.candlestickforums.com
  22. 22. Today’s trader has the advantage of a readymade system for technical analysis of price movement. www.candlestickforums.com
  23. 23. The job of today’s trader is to learn the process of trading stocks, trading commodities, tradingfutures or trading options. www.candlestickforums.com
  24. 24. For example, if he or sheis new at trading options a course such as options training with Stephen Bigelow can be an excellent choice. www.candlestickforums.com
  25. 25. Routinely back testing trading results will helpthe trader reverse losses and improve gains in the equity market where he or she chooses to trade. www.candlestickforums.com
  26. 26. Repeated review oftrading process will help the trader get rid of theeternal bugaboos of the trader, fear and greed. www.candlestickforums.com
  27. 27. The psychology oftrading can defeat the best laid plans andpracticed procedures. www.candlestickforums.com
  28. 28. A frequent and honest review of what you aredoing and why can lead to steady improvement in trading results. www.candlestickforums.com

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