What Would You Rather Do

Read About Someone Else's Forex Success or Experience Your Own

You can draw some useful parallels between running a business and Forex trading. For instance, most successful businesses keep statistics on everything from their conversion rate, to their average dollar sale, to the number of people that come in the door.
Businesses do this to keep on top of how they are doing on a day-to-day basis and businesses must first take score before beginning to improve on that score.

Using a Forex back testing plan in your trading works exactly the same way.
Now that you're looking at Forex trading as a business, you need to learn some valuable statistics about your system so you can improve it's performance.

You would use a Forex back-testing method. You can't improve your system unless you have something to measure it against. How could you expect to improve your trading unless you knew what it was you were looking to improve? You can discover these measurements and other valuable information about your trading system, by using a Forex back testing plan.
There are two ways that you can use a Forex back testing plan to back test a system.
You can do it manually, which can be a drawn-out and labour-intensive process, or you can do it with the aid of some software packages.

Unfortunately, I recommend you do it by hand when you first start out. You'll get a much better feel for your system, and you'll understand exactly how using a Forex back testing plan works in all its intricacies.
Once you have the Forex back testing plan and the in-depth knowledge, you could look at finding a software package that does it for you.

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