Transcript for:
Back Testing Strategies and Skills

hello little munchkins hello ah my back throbbing wait listen wait hold on I'm holding it oh it wasn't even loud great now it's gonna smell bad without you guys even knowing what happened wonderful I tried to grab the microphone so you could hear it it was like a you know like not even like a there was no noise it was just silent um but anyways day one of the boot camp of me drawing from your guys's ideas because I ran out of sheet so um today we are going to talk about how to back test correctly um and I'm not gonna lie this is going like I'm going to give you what I know and not necessarily what you want I'm going to give you guys I'm going to give you guys what I have what I know not what you want um because a lot of you guys were like I want to know how to back test using bar replay if I'm being real bar replay is not necessarily the best way to back test in in my eyes the best way to back test is just purely just literally just going back on a full chart right just going back to a random day scrolling down and saying boom let's start here and let's just analyze top down and get going and this is the reason why first of all on bar replay you are pretty much set to one time frame because if you go so let's say let's say you go bar replay on the 15 minute okay cool where did this even put us pray where are we at here we go okay cool this is bar replay on the 15 minute right this is showing us 15 minute price action at 9 45. okay but if we go to daily and want to see the daily bias it shows you the full Daily candle if we want to go to the four hour and see what our four hour buy should be it's going to show you the full four hour candle if we even want to go to the hourly and see our hourly bias it shows you the full hourly candle but that and then when you scale back to the 15 it shows you the actual price point that you want to see that's the issue with bar replay it's not live data so what I like to do is literally just say all right bro we're not we're not using bar replay we're just going to scroll back and if anything this is this is good the best way to test your strategy is through live market okay so if if you're like fiending to place another trade just do this and do what I would call like back testing which is literally just spotting examples of your strategy coming up right the little Aimbot thing that I was telling you about right like right here boom liquidity sweep breakup structure enter right like that stuff's super simple um like liquidity sweep breakup structure boom order block find an entry within here scale down into the four hour okay oops okay we see price draws up in there okay maybe you scale down to one hour find more confluences in there this is how I would want to back test not necessarily on bar replay everyone asks how do you how can you do it correctly it's whatever works for you whatever helps you learn and develop your skill for your strategy better and this just takes time right a lot of trading is just individual and personal okay so like for me you know maybe bar replay works for you for me it didn't because I had I was stuck to one time frame and I and you you couldn't like adapt to the overall bias and that's a huge part of trading if you don't know your daily bias if you don't know High time frame bias how do you know where you're supposed to take a trade on a low time frame to right you don't know so that's odds are right when you go back on bar replay you're probably going to get a worse risk or sorry a worse win rate on bar replay than you would in live markets so that's why I always like to judge my trading ability based purely off of live markets right if you want to back test live tests on demo using your strategy but when you're back testing just do just do target practice right boom go on go on The Daily what break of structure cool what's this order block cool enter right like it's these types of things that like you just want to get good at so like on on all those um on all the videos of me saying like oh like this is how you spot order blocks this is how you spot for Value gaps this is how you do this this is how you do that we're all talking about our building blocks just do that repeatedly right remember our homework for the order block day the fair value Gap day the liquidity sweep day and the break of structure day just do those over and over again that's that for me is what works best compared to going into bar replay not understanding daily bias and then like also if you go into bar replay just put it here the price is at that um if you could put price in a bar replay and you just like start playing it and you're like waiting for price to get to your area and you let's say you start off and you like see okay cool this is where price is at on the hourly this is where prices at on The Daily this is this is where like all of it's at right and you make your daily bias or you make your trade bias based off this but then you just stay on the 15 minute and you just see price develop and you're waiting for your areas to get hit what happens if they don't get hit and you just let price develop for like a while right then your whole right boom hourly break of structure what happens if we were bearish we're not seeing that on the 15 minute and we're probably still going to be looking for shorts right so that's why I like trading on live market way better than Trading actual like backwards Market because one it doesn't give you like all it it's lagging bro like it's not it's nothing comparison live moving market and also another thing right maybe you do have a good way to trade on bar replay another thing with back testing it doesn't bring the emotions in because candles as they're forming right let's say this is a Candlestick as it's forming it's going up down up down up down up down right creating its Wicks and it's scaring you that's causing emotions that's that's freaking you out versus on bar replay it's going like this bar next bar next bar right it's just going bar for bar bam for band for band um right so it doesn't have like like I'm I'm sure you guys will understand this because you guys are Traders but like you know when a candle's forming and it's like that causes emotion right you're like right like and that doesn't come out in bar Replay that only comes out in live trading again so the best thing that I would say for you for back testing if you do if you can't trade live right like over the weekend best thing that you could do is go back over the previous week every single day find one or two good trades that you could have taken on a on a pair and then find all of our building blocks throughout those days right liquidity sweep break of structure where is Market going right like just boom Envision it and then as it's as you do that then it'll be come a lot easier when it's time to actually trade on live markets to be able to spot it to be able to like boom it's right here boom it's right here right all that it will be way way easier okay like what's this boom liquidity Suite boom break your structure right like you'll be able to just like boom instantly Target it every single time and it'll just become robotic and then from there you got your strategy you got your building blocks you're able to spot them in a live market what's lacking that headspace that psychology okay so and then once you figure that out it's like dog you're you should be profitable okay and if you're not then let's start chipping away at those small the small little mistakes okay and that's what my goal is to do with the further videos obviously this first video isn't really covering anything that has to do with small mistakes but a lot I saw a lot of people asking about back testing so this would be my back testing strategy relatively short video today um again I said that these next upcoming videos will be relatively short because you know we've covered the bulk we've covered the big the big stuff um and now we're just kind of chipping away at these small things at these things that you guys need to need to learn and still understand that just come with market experience and hopefully I can accelerate you guys and push you guys through that so boom how to back test properly got it okay so this weekend you got something to do Aimbot practice and then once this next week starts up you know do your live trading do it on demo if you're not profitable yet do it on a baby live account whatever you guys need to do okay with that being said catch you boys tomorrow for another boot camp video also my filmer and editor comes tonight and I want to start doing Vlogs every single day for the next month along with these boot camp videos and along with trade recap videos pumping out content for you guys because I love you all right so with that being said I'll catch you