The Mission of FRW Organization a division of our Webtrading Traders Portal website is providing traders with the informastion and research they will neeed to trade the commodity futures, forex, options and stock market successfully and achieve financial rewards from profitable webtrading Remember, it's 'Your Money and Your Money Matters'
Now you know the problem with back testing of trades. Trade back-testing and simulated trading involving non-real-time trading are of dubious value. That's why they don't necessarily work too often and are far from a reliable money-making trading system when based on back-tested resullts when traded in real-time with real trading profits and losses. >
There are valid reasons why back-testing and trading simulations may often fail in real-time. That's because you don't really know for sure the high or low and if that market ever actually at that exact price so you do not know if your simulated stop-loss order was taken was hit or perhaps not.
If you say develop a trading system with trading rules such as 3 up-days then followed by 1 down-day, the market will be up 12-days or 82% of the time, then your statistics may be in-fact based on nin-valid data. A lot of stock and commodities futures trading research needs to be dine in both real-time and back-tested market research to develop a good time-tested trading system based on sound trading principles.