Backtesting is checking how your trading plan has performed in the past. It can be useful to gain probabilities of % success over the historical period tested, as this may be an indication of how the trading plan could perform in the future.

Trading plans may last for a time, but not forever. One of the key values in backtesting is statistics such as ’maximum number of stopouts in a row’ and the like, as this helps build rules for clearly defining when a trading plan is no longer useful.

Maximum number of stopouts in a row

Stopouts in a row   5? 6? 7?

Performance

3

The purpose of this graph is to highlight the common sense approach we take with our trading. For a given test period, we look for a historical maximum of 3 stopouts in a row.

Backtest

Backtest a trading idea over

the last 2 years

Copyright © 2011 Adapar. All rights reserved.

 Adapar Pty Ltd (ABN 80 132 597 114) is an authorised representative (317399) of Clearing and Settlement Services Pty Ltd (ACN 002 296 933) AFSL #238796. The provision of financial product advice to clients of Adapar Pty Ltd may be made by licensees other than Clearing and Settlement Services Pty ltd. Please refer to the PDS provided by your broker prior to acting on any financial product advice received. Any trading advice contained in this communication is of general nature only, and your personal financial circumstances have not been considered in its preparation. Please be aware that trading in financial markets will result in both profit and loss and may not be appropriate for you. We recommend speaking with your licensed financial advisor.

Using our unique shorthand method we answer the questions, What is the best sized profit and stop? Is scaling out for a given trading plan really a good idea? Should I wait for price to pull back so I can get a better entry?

The market’s ability to reflect true value from know information, gives us an insight into just how finely tuned the market is. When we place a trade, we are effectively saying we have found an element of the market that is not finely tuned just now, and we are trading it back to true value.

Finetune your profit and stop size

Not sure how to finetune

Performance

The purpose of this graph is to highlight the common sense approach we take with our trading. The ability to finetune your profit and stop with our unique shorthand approach can really help the performance of a trading plan.

Finetune

Finetune your trading idea

for best sized profit and stop

A common trading approach is to work hard on finding one trading plan that works. The idea being that the trading plan will have more winners than losers and so after a number of trades, the notion of probabilities may grow the trading account. However to survive as a trader you need to be smarter than this. We layer successful trading plan on top of successful trading plan, so while each trading plan has probabilities on its side, the many layers of trading plans as a collective have the probabilities of success on their side.

Trading Plan A

70%

Trading Plan B

70%

Trading Plan C

70%

Trading Plan D

40%

 

   75%    trading

  plan    success

Performance

3/4

The purpose of this graph is to highlight our common sense approach to trading.

Layer

Layer your trading ideas with

the probabilities of systems

At the end of our 3 months coaching  we ask :

 

1) Are you 100% satisfied with the coaching?

2) Are you now empowered with all you need to know to be a successful trader if not one already?

3) Are you on track and applying your new found knowledge in an organised and methodical way?

 

We are proud to say so far the answer has been 98% YES to all three questions. Only 1 in every 50 clients is a grumpy one, that’s pretty good stats.

Satisfied

98%

Empowered

98%

On track

98%

Generous estimate of the success of traders who have not done our course

5%

Performance

The purpose of this graph is to highlight our common sense approach to trading.

Build

Lets build systems

together online