The Trader’s Guide To Backtesting

Backtesting: To Test or not To Test?

One of the key elements which determines whether a trader will become a consistently profitable market participant or join the swollen ranks of losing retail traders, is the individual’s ability to execute a ‘rules based technical trading strategy’. The professional trader defines a specific rule set which allows them to engage the market under certain circumstances and execute a trade.

Once a trade is entered, the professional trader then adheres to a risk management strategy and rules for managing their trade either to a profitable or loss making exit. The professional trader continuously executes their trading planwith the aim of creating a statistically significant set of trade outcomes that will allow the trader’s edge to demonstrate a net profitable return.

Pro Traders Test

A great number of professional traders seek to automate their trading strategies in an effort to avoid common psychological based trading errors. These errors can often times take a solid trading strategy and turn it into a losing strategy that ultimately fails to deliver against profitable expectations. In the worst case scenario, errors even can liquidate a trading account.

The process of automating your strategy will entail developing an Expert Advisor for the metatrader platform; essentially a trading strategy coded for the MT4 platform and representing the trading logic of your trading plan.

Have you downloaded our MT4? Get it here. 

A key step in the process of creating and subsequently trading a technical trading plan, is backtesting. As the name suggests; the backtesting process allows the trader to test their trading plan using historical data of the financial instrument they intend to trade. Aspiring professional forex traders are able to take advantage of the backtesting function on the metatrader platform.

We’ll walk through the process and look at some of the unforeseen pitfalls to avoid to assist you in creating and benefiting from a thorough backtest. So, for the purposes of this piece, we’ll assume that you have already developed your trading plan and subsequently have your trading strategy coded. Overall we’re assuming that you have an Expert Advisor ready for backtesting.

Once you have enabled the strategy tester function on your MT4 terminal. The strategy tester window will pop up, this will allow you to select to select your Expert Advisor and define the instrument you wish to test your trading strategy on. You can also define the time frame you wish to test on, one of the most important functions for creating a valuable backtest is the Model functionality.

Modelling Quality Is The Key

The Model functionality input is one of the largest pitfalls that a trader can fall foul of. Many aspiring traders fail to recognise the importance of the data integrity that they are testing their Expert Advisor on. The data quality requirement is specifically relevant when your trading strategy is more aligned with a scalping approach, where your profit objective is one to fifteen pips.

The pitfall is that the Metatrader terminal does not have direct access to the tick by tick price data over the history of the instrument you have decided to test. It can only access the minute by minute bar data which is the open, high, low and close price. Because of this limitation, the Metatrader platform actually delivers false price ticks via a process known as ‘interpolation extracting’ from the smallest price data available.

As previously mentioned, where your trading strategy has a stop and take profit objective greater than 100 pips, then interpolation won’t affect the quality of your backtest. Regardless of stop size, it is always advisable to use the best data you can source, specifically if you want to model your backtest with high quality tick data. Using tick data will ensure your back test is modelled to 99% accuracy.

It is not uncommon for trading strategies tested on either control points data (which simply takes prices from the shortest time frame available) or open prices only data (which is the crudest form of low quality data) to deliver test results that show a strategy to be hugely profitable. The same strategy when tested on tick data could demonstrate an unprofitable strategy. The more accurate the data the more accurate the backtest results, because the tick data level of data most closely reflects the reality of the trading environment.

Spread Variability

A further key input to think about, which you’ll need for a valuable set of backtest data, is that your data needs to reflect a variable spread. As all experienced traders are aware, retail brokers are notorious for variable spreads in the foreign exchange markets. So, it’s a specific aspect that must be considered where spread, even on FX majors, can fluctuate from 0.5-5 pips or more during periods of low liquidity or high volatility. The spread variability will have an impact upon the real time performance of your trading strategy and so needs to be factored. The metatrader terminal only offers a fixed spread function through its backtesting function.

Have you checked out the spreads on our major FX pairs? Open your account now!

One way to overcome the issues regarding data quality and spread variability is to acquire historical data from specialist data providers, there are a number of providers that produce 99% tick quality data with historical spread variability within the data set. So not only do you get the highest quality data but you also benefit from the historical spread which occurred through the history of the data set.

This 99% quality data will also replicate slippage that may have occurred during market price gaps occurring intraday and over the weekend. The better quality data also facilitates testing on multiple metatrader terminals at the same time helping to decrease the time to get your backtesting completed.

Reading The Results

A few statistics to take note of:

  • Total net profit = Gross profit – Gross loss.
  • Profit factor – The ratio of gross profit to gross loss. Higher is better, anything above 2 is acceptable.
  • Absolute drawdown – The drawdown of your initial deposit. High drawdowns increase the likelihood that your account will be blown out.
  • Profit trades – Your overall win percentage.

At this juncture it is also prudent to examine the percentage of the results that have a profit versus loss. Sort the results by profit and scroll down through the list. A robust strategy should have a high percentage of profitable result sets. Also pay close attention to the profit factor and the drawdown. If the profit factor is less than 1.5, and too close to 1.0, you’re losing too much of your gross profit to losses. The drawdown percentage should ideally be around 10-15%, and no more than 20%. If your drawdown consistently exceeds this, then you are either taking on too much risk (large lot size or stop loss), or the strategy is simply unprofitable.

In part two we will look optimisation and curve fitting, out of sample data and optimal optimisation.

Working with layout viewports

When you start your work with a drawing under the Model tab, only a single view of your model appears there. You can create more views by dividing the drawing area into different windows. Each of these additional windows is a separate viewport under the Model tab.

To see your model under the Layout tab, you need to create at the least 1 layout viewport there. You can also create multiple layout viewports that represent specific views of your model in the model space. Each layout viewport acts as a separate window that lets you view you’re drawing in the model space. You can customize the view center, the scaling, the visibility of layers, and the contents of every layout viewport. Every layout viewport happens to be a stand-alone object that you can move, copy, or delete.

Click Mpf viewports to make it the current viewport. Then insert or modify objects from the model space in this viewport. You can snap objects in the model area from the paper area. Changes made in one viewport are immediately reflected in the other viewports (assuming these viewports display the same section of drawings). Panning or Zooming in current viewports has no effect on other viewports.

Create layout viewports

When you switch to a layout tab for the first time, there are no objects in the model area. You must first create at least one layout viewport to view your work. You can create layout viewports anywhere in the canvas. You can also control the number of viewports created and their arrangement.

To create layout viewports

Do one of the following:

  • Choose View> Paper Area Views.
  • In the Layout toolbar, select the Paper Area Views tool.
  • Type mansfs and press Enter.

In the context menu, choose between the options Customize or define two opposing vertices to create a custom viewport.

Select the orientation of the viewports in the context menu.

Do one of the following:

  • To cause the viewports to fill the current printable area, choose Fit to Screen Size from the shortcut menu.
  • To fit the viewport within a bounding rectangle, set the corners of this rectangle.

TIP: When creating a layout viewport, its boundary is created on the current layer. You can hide the boundaries of a layout viewport by creating a new layer before creating layout viewports, and then disabling that layer after you create the layout viewports. To bring up the boundaries of a layout viewport, you must re-enable the layer. Only then can you rearrange the layout viewports.

Choosing the Right African Shows

Of the three services, television is the one that has generated the most questions from those around us. Because Canadians are (again!)Big consumers of television.According to the African Radio-television and Telecommunications Commission (CRTC), every Canadian spends a little more than 27 hours a week in front of their small screen.

  • In short, people are attached to their favorite shows. Cutting the cord becomes a painful gesture.
  • The real question remains: what are you really listening to? Which channels are essential? Which ones can you do without? Do you have programs or series that are really essential?
  • But in the end, can the web offset our use of traditional television? After a little thought, it’s obvious that we can do without a monthly cable subscription.

Indispensable, good to have, useless

So, what is our consumption? The news at RDI and some sports (hockey and baseball) are the only shows we listen to live. I will come back to it, but all that is legally on the web.

For general consumption, African streaming are our main destinations for French-language television. Most of the time, all things found on the digital platforms of the stations or by digital signal. We hardly listen to cable television in English. In you will be able to have them  all and that too within the budget that is perfect for you now.

Yes, the kids and I (notice how I get my girlfriend out of the equation) listen a lot to sports channels. This is where the thought becomes interesting. Do we listen to these channels … or do we listen to the sports they broadcast?

You see what I mean?

You have to differentiate between the channel and the content. Given the abundance of the latter, the channel becomes less and less important. We are then in a huge Chinese buffet.Which brings us to the question of choice. What is indispensable, who would be ideal and what can be done?

The indispensable

We are in the Cup playoffs and we have subscribed to the GameCenter Live service. This allows us to listen to all parts in real time or offline. So far, the only downside is the restrictions preventing the broadcast of African versions of the games. It’s a minor thing.

We also subscribed to MLB.TV, an equivalent service for baseball. The Blue Jays will no longer be the only team (or almost) that we can follow diligently. We can now play every game, no matter where. We still have no restrictions like hockey.

Otherwise, all the rest of our TV consumption was already happening on the web. We have been a Netflix subscriber for a long time and kids find a lot on YouTube. I’m also a follower of Vimeo, another online broadcast service.

True Opportunities for the Perfect making of the Machines

Not enough fingers on your hands (and on your feet) to count all the fantastic books, movies and games, which feature energy weapons. Admit, each of you would like to have such a thing to roast with furious laughter enemies with multi-meter artificial lightning. A friend with Rob was no exception, and under the impression of the comic The Five Fists of Science assembled his own Tesla gun. The weapon did not become an exact copy of the gun from the comics, but it differs from its literary prototype in that it really exists.


  • The body is made of aluminum by sand casting as a model for the form was used a children’s gun.
  • After casting, a rather coarse surface is obtained, so the body was machined on a CNC milling machine to achieve an ideal match of the body halves.
  • The heart of the Tesla coil is a high-voltage switch, in which case an uncontrolled arrester appears in the role. The current in the pulse reaches thousands of amperes, so you need to choose materials that are resistant to enormous temperatures and have good electrical properties.
  • The body of the discharge chamber was made of porcelain. First of all, a form was printed on the 3D printer. For that the High Voltage Electron Gun Mount is important.
  • The mold was filled with ceramic mass, and after a couple of days of drying in the air, the parts went into the kiln for firing.
  • Tungsten welding electrodes are used as the discharge electrode. During work through the chamber of the arrester with the help of a fan, air will be continuously blown to cool the electrodes and extinguish the electric arc.

Source of power

The gun is powered by an 18-volt lithium battery from a screwdriver. Low voltage is applied to the converter, which raises it to 20,000 volts.

Battery capacitors

Another mandatory component of the Tesla coil is a storage capacitor bank. The battery is assembled from the capacitors 942C20P15K-F 0.15 μF 2000 V, 6 pieces in series. Each is shunted by a resistor to equalize the voltages and ensure a safe discharge after shutdown. For the capacitors had to make a separate case of plexiglass. Body parts are cut by laser.


The primary winding consists of five turns of high-voltage wire, and is closed by two milled lids made of high pressure polyethylene (HDPE). The secondary winding is wound on a 2.5 inch ABS-plastic pipe and contains 1100 turns of 0.25 mm (30 AWG) wire. Outside, the winding is covered with aerosol polyurethane lacquer, and the lower part is additionally insulated with fluoroplastic tape. The aluminum torus crowns the coil, which provides the resonant capacity of the secondary winding. It is from it that lightning will strike.

New Options of Soups in the Soup Day

Few people know that April 5 is considered to be the International Soup Day! It would seem that such an everyday dish – he should not pay special attention.However, in addition to the fact that soup is one of the most useful dishes for the human body, there are many other interesting facts. Who would have thought that the soup hides so many secrets?

  1. Soup by right can be considered a retirement age –

Its oldest recipe is stored in the culinary book of Apicurus, which was written back in the IV century. The recipe is quite simple, as is the set of ingredients: wheat, olive oil, meat, pepper, bay leaf, caraway and wine.

Soup – one of the most beneficial to the human body dishes

  1. Soup can be incredibly expensive!

The highest price for this dish is given to soup of swallow nests, which is very common in the East: in China, Vietnam and Malaysia. True, egusi soup is not prepared from nests, but from swallow saliva. It is with her help that birds fasten their nests. Consistency of this soup resembles a real kissel.

  1. Traditional soup goulash, home to which Hungary is considered to have been taken under the protection of UNESCO! It happened after one of the annual “Goulash Festival”. The organizers of the event decided to declare this soup a monument of cultural heritage for nothing.
  2. The word “soup” in Russia appeared only under Peter the First. Until then, all liquid dishes in Russia were called only soup, but in Western Europe – soups. By the way, this word comes from the Latin “suppa”, which means “bread soaked in broth or broth”.
  3. Worldwide there are more than 150 types of soups, which, in turn, are divided into about a thousand species. And each recipe of soup is unique and unique. Did you know that there are as many as 22 types of borscht and 24 varieties of all favorite cabbage soup?
  4. Many outstanding personalities adored this dish! For example, Napoleon Bonaparte was crazy about chestnut soup. But Hitler and Elvis Presley liked to eat vegetable soup.
  5. Soup left its mark in the history of art! American artist Andy Warhol wrote in 1962 a painting in the style of pop art, which depicted thirty-two cans of soup company Campbell Soup. Now this canned soup is so popular in the US that on average Americans consume 2.5 billion servings of this soup per year.

The Essential Choices That You Are Sure of In Factoring Now

There are shipments to the buyer is done standardly, through the “Sales of goods / services” and issue an invoice.Assign the request to the agent with a similar document. The operation is not subject to taxation, so you do not need to issue an invoice.

Your Smart Options

Write off a monetary claim from the buyer (usually carried out as “Other expenses”). To do this, create a document “Debt write-off”, select the type of debt “Debt of the debtor”, select the customer by the debtor and tie up the cost item.

The first payment from the factor is carried out as “Payment from the buyer”. The payer chooses his financial agent, at the base of the payment pull up the implementation, on which the assignment was made.For the services rendered, the agent levies a commission on which it is necessary to pay VAT. Create a new “Receipt of goods and services” and enter an invoice on its basis. The support of the factoring company is essential now.

The Second Part

When you receive the second part of the amount after deduction of commission, the balance of the debt is closed with the document “Offsetting accounts receivable”. The creditor and the debtor choose your financial agent. If you fill out the document automatically (using the “Select by balances” button), then the “Debt receivable” tab will show the balance of the assignment debt, and on the “Debt of the creditor” tab – the invoice for the commission.

Take to deduction of VAT on commission, for this purpose, in the journal “Formation of purchases book records”, create a new regulated document.Important! When working with this algorithm, make sure that the factoring agreement is correctly selected in each document.

Factoring in the Country: Advantages, Disadvantages and Prospects

The convenience of factoring is confirmed by the benefits that each participant in the transaction receives.

Supplier Factor Buyer

  • There is no receivable.
  • Income from commission.
  • Deferment of payment.
  • There are no financial risks.
  • Growth of the customer base.
  • Possibility of payment in installments.
  • Fast turnover of capital.

Increase in profitability

The main disadvantage of factoring until recently was a cumbersome and not always transparent document flow, which at times increased the transaction cycle and costs for it.

Decreased commission

Decreased labor costs for document processing.Shipment of goods and receipt of payment became possible in one day.Knowing the rules and features of factoring operations, it is easy to understand whether they suit you or not. However, it should be taken into account that factoring is ineffective with too rhythmic schedule of shipments and payments.

Great Suggestions On How To Grow Your Business For Free

As an online retailer, you are always looking for ways to increase your sales and optimize your profits. Whether you want to increase visitor traffic on your website or increase your average order value, options are endless. However, many of them not only eat tons of time but also money. Factoring company provides you 12 tips on how to grow your ecommerce business for free and get more revenue and long term success.

  1. Offer customers a working customer service

With a functioning customer service, you can sustainably increase the loyalty of your customers. The alpha and omega here: Always give your customers the feeling that they are special. Offer your customers an unforgettable service.

  1. Pay attention to a psychological pricing

Believe it or not, you can have a big impact on how your customers make purchasing decisions. They determine the rules. Through psychological pricing in your online store, you strategically set prices for your products and offerings that could potentially drive customers to spend more.

  1. Discover mobile customers for themselves

According to a study, mobile online sales in 2018 are expected to break the $100 billion mark. Get a piece of this potential that also makes your online store suitable for mobile use and provides you with the most important functions for a seamless mobile surfing experience.

  1. Integrate compelling shipping options into your strategy

Taking offers as an incentive for customers is always a great way to increase conversion rates and reduce order cancellations. With these four shipping strategies, you can win the 55% of customers who make their purchasing decisions based on the cost of shipping.

Free shipping on a specific order value – if you can afford it, you should offer this option! Define an order value, from which the customer can save the shipping costs. Make sure that this strategy is really worthwhile for you and set the free shipping. Express delivery – Customers who want to get their orders quickly in their hands, can offer you an express delivery option with a delivery time of one, two or three days. Unit price for shipping – this option is especially effective if you mainly sell products that are very similar in size and weight. Free return – With this strategy, you gain the trust of many customers.

  1. Put on email marketing

Regular e-mails can add value to your online store, promote special offers, increase traffic to your website, increase sales, and build a closer relationship with your customers. Here are a few examples of email campaigns that do just that:

  • Welcome emails for new subscribers
  • Welcome emails for new subscribers
  • Monthly newsletters with information on new products and offers
  • Birthday emails
  • Notes on new or similar products
  • Ask for product reviews and feedback
  • Reminders of open shopping carts
  • Reminder emails for customers who have not been in your shop for a long time

You can also be inspired and have a look at some of them that are guaranteed to work!

The Best Advice to Find a Low Interest Home Loan from a Money Lender

As its name indicates, the credit between individuals is an operation in which the lender and the borrower are individuals.There is no bank involved in this type of loan, which can sometimes lead to excesses as well from the borrower as the lender.

For a Singapore lowest interest refinance home loan between individuals to be serious, it is imperative that both parties are serious and respect their respective commitments. This is of course also the case in the case of a repurchase of credit between individuals

Know how to judge the seriousness of a lender

When a person looks for a loan between serious individuals, he implies that he wants to find a real lender. The search for a private lender takes only a few days for some and a few months for other people. In the sector of credit between individuals, scam attempts are very common especially on the internet. In fact, there are many private individuals who pretend to be low-rate money lenders and who ask for a certain amount of money for so-called fees. This is the biggest and most common scam on personal loans. So you must opt for low interest Singapore licensed money lender to avoid any such fraudulent activity.

However, there are other factors to consider in determining whether it is a serious lender or not.There are several points to judge whether the loan between individuals is serious:

  1. The interest rate proposed by the lender

The first point to consider is the interest rate offered by the lender. Generally, in the case of a credit between individuals, the interest rate is cheaper than those offered by banks. However, the rate offered by the individual must not be 40% cheaper than that of the bank. Keep in mind that the goal of a lender is to make money through the interest rate of the loan. As a result, in the case of a serious lender, it is in the best interest to try to offer the highest rate in order to maximize its earnings.

  1. The proposed sum of money

Another criterion is the amount offered by the lender that usually does not exceed 10,000 for a serious lender. Individuals offering to lend tens of thousands of money are in 99% of cases to flee.

Regardless of the amount loaned, it is always advisable to politely ask why the person is lending money to other individuals. If he replies that he prefers to lend this money because of low bank interest rates, this lender seems a priori honest and serious.

  1. His past as a money lender

There is an important question to ask in order to determine whether one is in the case of a serious and honest personal loan.Ask the individual if they have loaned money in the past or if it is the first time. This question is important from a legal point of view insofar as an individual does not have the right to lend money to more than one person because it would be considered a bank, which is strictly prohibited.

  1. The signing of the contract at the notary

The finalization of a loan between individuals generates fees and, therefore, only a minority of loans between individuals requires the services of a notary. Thus, in the case where the lender proposes to use a notary, it means that it is serious and in this case the loan between individuals will take place in the best conditions since a notary will have framed the operation. Passing through a notary secures the transaction for both the lender and the borrower.

By following the tips and tricks above, this avoids any financial disappointment for both the borrower and the lender.

Best Results Of E-Invoicing With the Account Receivable Financing

You probably know now the benefits of e-invoicing. We have already presented them in an article of this blog. But how do you convince your customers and suppliers to follow you? Here are some tips to help you.

Inform your customers

Nobody likes to be faced with a fait accompli. Start by taking the time to inform your customers and suppliers and explain to them that you would like to switch to electronic invoicing. Of course, you do not have to ask everyone directly to change the system.

Start with customers and vendors who seem interested in e-billing or who do not think you will. You can then create on your website a page where they can give you all the information you need.

Make sure it only takes a few minutes. Also make sure your customers have to change as little as possible. E-invoicing should not waste time or money. She would not really have any more interest. So remember to give them all the information they need to make this transition as simple as possible. You can get the options for the accounts receivable financing now.

Keep things simple

Use simple and understandable terms. Often, the way this system is presented – when it comes to XML or EDI files – is enough to discourage many people. Naturally, be sure to highlight its advantages: saving time, reducing errors, simplicity, etc.

For example, most accounting software makes it possible to create a PDF , a format that almost everyone knows today. So your supplier only has to send you a PDF document by e-mail, a solution that is clearly easier and faster than printing an invoice and sending it by post.

Reward your customers

Why would not you give your customers a small discount when they accept an electronic invoice? This discount will be quickly offset by the benefits of this system.

You can also organize actions in parallel: for each customer or supplier who will switch to electronic invoicing, you will for example donate to a good cause, or put into play gifts that participants can try to win. Let your imagination be free!

Start with yourself

If two people wish to switch to electronic billing, one will have to comply with the terms and method of the other. Rather than expecting your customers and suppliers to make every effort, ask them how they are doing exactly and adapt your procedures to their own. They will then show themselves probably much more conciliatory.

Tips To Find The Right Budget Friendly Factoring Company

If you have a small business and you are unable to collect the credit from your clients, then you should seek help from a factoring company. There are multiple factoring companies are present in the market and they offer invoice financing at a low-interest rate. There is no doubt that, the factoring companies offer the invoice financing at a lower interest rate than the commercial banks, but that is not sufficient for a business which has a lot of bad credit. If you are dealing with bad credit and get out that situation as fast as possible, then you should hire a budget-friendly factoring company for your business. Choosing the budget-friendly service provider doesn’t mean you have to compromise on the quality of the services. If you are willing to hire a budget-friendly factoring company, then you have to consider certain things before hiring the company.

Compare The Interest Rate: Comparing the interest rates of the factoring company will help you to get the best quality services at a competitive price point. Asking friends and subordinates to find a factoring company is the most common way to get recommendations. But this is not sufficient if you want to hire the best factoring organization for your business. use the internet to make your search and try to collect the contact number of at least 10 different factoring company. This will help you to get the contact number of best factoring company in a convenient manner. Now ask the companies for a quote and compare their interest rates. Different factoring companies offer their services at different interest rates, and comparing the rates will help you to find the most budget-friendly organization for your business.

CollectReviews: Hiring the budget-friendly factoring company will not be enough if they are unable to collect the bad credit from your clients. That is why before hiring any factoring company, collect reviews from their previous clients. This step will help you to avoid complications, which may arise in the future. The reviews will also help you to get a clear idea about the success rate of the factoring company.

Following the above-mentioned tips will help you to find the budget-friendly factoring company for your business.

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