How can i evaluate trading strategies for binary options
One of the best ways to test an indicator or a strategy is by paper trading in which you need to scroll back the chart while seeking signals in accordance with the indicator strategy you are willing to evaluate. But then this type of method is sometimes subjective as you get to see the entire chart the possibility of getting influenced is more. This article takes to explaining the way of evaluating strategies like you are trading in real time.
Available in Meta Trader 4 platform, to use the Tester you require to open a chart of the currency pair to want to conduct the test on. Once you have done that you will need to attach a default Expert Advisors to it that is again available on the MT4 platform. With that a small window is likely to open, which will let you select the settings for the Expert Advisor. However, it is not an important job, so you can skip that.
But then, there are some platforms that do not have it. In that case, you just need to press F6 and the window will appear. And then you will get to see many settings that you should adjust.
You might get the following tabs;. Once you do that, a fresh chart will come up. Now, you will find the prices oscillating in a normal market condition.
Last but not the least; you will have to add indicators to it, provided you have one. In order to derive trading signals, it plots them on the same chart and makes use of the 9 day MACD of the respective asset.
Now, when the MACD goes beyond its 9 day moving average, it indicates a better time for buying and when it goes further below, it indicates selling time. The market conditions are extremely volatile and there is no hard and fast rule as to suggest in what ways the indicators will derive the accurate results.
A plotted chart can anytime give different result than that of a real market situation. So, you should always keep in mind that there is not a single Holy Grail, atleast not in the trading market. Anytime, the market can turn a complete U-turn and you can find yourself under tremendous loss.
Furthermore, with so much volatility and price adjustments, false assumptions may also be generated. The most integral problem here is that reliable trade opportunities, in which all the indicators reveal the same results are very hard to find and almost impossible. Your email address will not be published. How to use our strategies from Best-Binary-Options-Strategy.