Backtesting and optimization

BACKTESTING AND OPTIMIZATION

How to build confidence in your trading system? How to find the perfect strategy? How to select the best parameters?

Use 4xDev backtesting and optimization services to profit and make your trading successful!

Backtesting

Backtesting is testing a trading strategy on historical data modeling trading mechanisms of the past. This procedure allows you to analyze the strategy's retrospective viability and behavior.

Optimization

Optimization is a process of functionality improvement. To get more accurate backtesting results and make the strategy more profitable, you should fine-tune settings.

Price for Backtesting

~400 USD

Price for Optimization:

The cost of the service is calculated separately in each case.
It depends on what should be changed in the tool.

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What Is Backtesting?

Backtesting is testing a trading strategy on historical data modeling trading mechanisms of the past. This procedure allows you to analyze the strategy's retrospective viability and behavior.

Spend several days using backtesting pros instead of centuries on a live/demo account. To get fast results, you can skip long periods.

To speed up testing, you can use the quotes archive. This allows running a backtest at any time (even on the exchange weekend).

To learn more about backtesting and its peculiarities, read our article: “Why Should I Backtest My Trading Strategies?”

Why Should I Test My Trading Strategy?

A random strategy can jeopardize your capital. A series of loss-making trades will be chasing you. Do you want to be a part of such a sad scenario?

You should backtest to:

Check the strategy's behavior, performance, and profitability in various post-fact market conditions at different periods.
Visualize and analyze objective results.
Evaluate risk management mechanisms.
Identify strategy's strengths and weaknesses.
Optimize the initial parameters to increase efficiency and profitability.
Develop a reliable trading system and build confidence in it before going live.

We, the 4xDev team, can simulate trading environments and price changes from a certain period in the past. With our help, you can check all the crucial aspects of your strategy.

How to Backtest a Trading Strategy?

You don't need any coding skills to perform backtracking. Just use our services!

To test the strategy, we can run a manual visual backtest using standard indicators. Also, we can create an EA that implements your trading ideas.

We will:

Find unbiased data.
Configure backtesting settings (capital at risk, leverage, spread, stop loss, etc.) according to your wishes.
Choose the timeframe, symbols, market type, execution mode together with you.
Test the strategy in different market conditions and over various periods. Thanks to this,we will get reliable results and evaluate its performance.
Analyze statistics about the given system, estimate risks, and represent all the info into the statistical report.

We can identify how the trading strategy has performed in the past. Thanks to backtesting results, you can see whether you should fine-tune your strategy.

Even the simplest backtesting shows you approximate profit dynamics. Past statistics give an idea of what to expect in the future if certain market conditions arise. In this way, you can plan solutions and actions to overcome them in advance.

A Few Comments About Backtesting

Let's imagine that your strategy:

Has provided stable performance in various market conditions.
Has made a profit.

What in this case? There is an opinion that if the strategy has been profitable in the past, it will be successful in the future. And vice versa.

This belief has appeared since markets run in cycles. However, the market never changes in the same manner. Plus, any cycle may be broken.

Note! Even the strategy that showed excellent performance in the past can bring losses in the future. Why? It occurs due to changes in the market, prices, and in the world. No one can predict it. No strategy can make a profit in all the market scenarios. Backtest your system over a variety of market conditions.

Is your beneficial strategy stably working on a live account is starting to hell around? There is no point in making wild guesses. This means that something has changed in the market.
So, your strategy needs correction or additional optimization. Run a new backtest to identify the model's weaknesses.

However, this doesn't mean that backtesting is useless.
Thanks to this option, you can:

Reduce potential losses.
Identify the potentially profitable strategy.
Gain a competitive advantage.
Provide stable performance during various market states.
Get rid of your negative emotions and stress using a proven system.

So, this “prompt buddy” is a must-have component of successful trading.

OPTIMIZATION

What Is Optimization?
How to Optimize the Strategy?

What Is Optimization?

After backtesting, we can determine if the model is okay or not. A poor strategy can either be ditched or fixed. A good one can be improved or refined.

Optimization is a process of functionality improvement. To get more accurate backtesting results and make the strategy more profitable, you should fine-tune settings.

Strategy's parameters may be configured manually or automatically.

For example, you have to configure:

Tick sizes.
Position-sizing rules.
Lot sizes.
Etc.

How to Optimize the Strategy?

We can save you the trouble of optimizing your strategy with your own hands. Our team can do it for you.

We will rerun the test over another or the same data using different parameters.

Then we will configure your tool according to your wishes and the received backtesting results. In other words, our team will fine-tune your strategy.

Optimization helps you to improve your model and create an awesome trading system.

In Conclusion. What Should I Do?

Don't underestimate backtesting! Put your trading strategy to the test and find out its weaknesses and strengths.

You should do it before going live and start risking any live money. Trading without it will bring significant losses.

Don't be afraid to contact us. Our managers are customer-friendly. They will pay special attention to your tasks, wishes, and problems.

The 4xDev coders will program your EAs using a reliable custom strategy. We will thoroughly backtest and optimize it. Just hire us to feel the power of trading!

Trade with confidence — with 4xDev services!

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