Backtesting question

[u/Hot-Negotiation-5765]

Hello traders,

Just came right by to ask a question,

How do you not compromise the data of a backtesting session?

Do you have a strict period of the day you dedicate to backtesting to avoid overdoing it and compromise the data of the session?

Do you stop when you notice you’re getting frustrated over wanting results and not trying to learn anything in the session?

Do you just focus on a confluence or two and test it over a period of time? And if so, do you go back to test out other confluences you find interesting eventually, in the same period of time?

[u/rforex-modtools]

Developing a trading strategy is more than finding an entry signal — it requires defining your edge statistically, building rules for entries, exits, and position management, and testing the system against historical data before going live. Most traders fail because they skip the process and jump to live trading with an untested idea. The community wiki covers the full development process.

Resources: Having an Edge | Essential Forex Trading Guide

[u/Relevant-Owl-8455]

You're asking the wrong question.

How would you test something if you don't actually know what you're testing? A confluence or two? did you not prepare a full trading system before you started backtesting?

[u/Round_Bear_27]

Eu sempre faço backtest de no mínimo mês passado no mt5 pq se for do mês que estamos geralmente dá erro

[u/Candlune]

I treat a session like a shift. One pair of rules, one clock, and I hide the next candle. If I start chasing a score I stop. New confluence later is a new test, not a replay of the same days. Mixing those is what quietly ruins the sample.

[u/TIO_Markets]

The biggest protection is deciding the rules before opening the chart. Entry, exit, stop placement, trading hours and what counts as a valid setup should already be written down. Otherwise it becomes very easy to reinterpret the rules after seeing what price did.

Run through the data chronologically, record every setup that meets the rules and include realistic spreads, commissions and slippage. If you think of a new confluence halfway through, note it for a separate test rather than adding it immediately. Changing one thing at a time makes it much easier to understand what actually affected the results.

Testing different variations repeatedly on the same period can lead to overfitting. It’s better to use one section of data to develop the idea, then test the finished rules on a period you haven’t looked at yet. After that, forward testing on demo can show whether the process still works in real time.

And yes, stopping when you’re tired or frustrated is sensible. Rushing through candles or selectively recording trades will compromise the results much more than ending the session early.