Friday, May 13th, 2016

How many days, weeks or months should I test my stock trading strategy?

? Cu? Nts d? As, weeks or months is necessary to prove my negotiation strategy? N value before using real money? So far my approach works, but I’m not sure cu? Much time to wait before risking real money.

Comments

3 Responses to “How many days, weeks or months should I test my stock trading strategy?”
  1. Avid Wad says:

    You cannot [truly] accurately simulate whether a strategy works by making pretend trades. What hedge funds typically do is allocate a smaller amount of actual cash to trade strategies once they think there’s a good chance of it working. This is because you can “backtest” and “mock trade” forever without ever actually knowing if a strategy works.

  2. Party says:

    hi there!!

    when you feel confident after trading the stocks with play money, when you feel that yes a particular when short will give me profit, when I roll the so and so bet would give me profit, ….then you can go ahead with real money

    Play money feature will help you to learn to trade stocks in a better way and will help you to gain experience in trading

  3. Common Sense says:

    A. You should back test……. for example my broker allows me to back test tick by tick. I can pick a point in time and watch my stock in real time or 3 times real time.

    B. A strategy can work a few weeks, months or years. They never work forever. So back testing allows you to verify your approach in a relatively short period. This way you’re not wasting opportunity via paper trading in the actual market.

    So in effect, back test for a few months…. but do the test in a few days.

    If your broker doesn’t offer true back testing…. you’re with the wrong broker.
    http://webreprints.djreprints.com/2390280139740.pdf#view=fitV,100

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