Manual backtesting in 7 steps
- Write your rules so clearly that someone else could follow them.
- Choose one instrument and timeframe and go back 1–3 years on the chart.
- Move forward candle by candle (TradingView's Bar Replay helps).
- Every time your setup appears, record entry, stop, target and result in a spreadsheet.
- Do not skip trades you “would not have taken”.
- Collect at least 50, ideally 100 trades.
- Calculate win rate, average win, average loss, expectancy and the longest losing streak.
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Questions people ask
Is demo trading the same as live trading?
The prices are similar, but emotions are not. That is why the next step is a small live account with low risk.
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Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.