I’m currently programming and backtesting some basic mechanical entry systems.
I would like to get your thoughts on how to accurately measure the reliability of different entry methods.
My initial thought was to only evaluate the winning % if TP and SL are equal e.g. how often will price move 20 pips in the forecasted direction rather than against it. The problem is what number of pips to work with?
Another option is to see if price has moved in the predicted direction after x number of bars.
Any advice on the above will be appreciated.
If you have a 100% mechanical entry system you would like me to program and test please have a look at this thread: http://www.forexfactory.com/showthread.php?t=275628
So far it seems that achieving 55% winning trades with equal SL and TP is not easy at all, especially for systems that trade frequently.
I would like to get your thoughts on how to accurately measure the reliability of different entry methods.
My initial thought was to only evaluate the winning % if TP and SL are equal e.g. how often will price move 20 pips in the forecasted direction rather than against it. The problem is what number of pips to work with?
Another option is to see if price has moved in the predicted direction after x number of bars.
Any advice on the above will be appreciated.
If you have a 100% mechanical entry system you would like me to program and test please have a look at this thread: http://www.forexfactory.com/showthread.php?t=275628
So far it seems that achieving 55% winning trades with equal SL and TP is not easy at all, especially for systems that trade frequently.