From Vertical Solutions:
Introduction to Testing Trading Ideas
This is a very easy to read and easy to comprehend introduction to developing and testing mechanical trading strategies. If you are even slightly interested in developing your own strategies or testing current strategies but are not sure where to begin, this article may be very helpful.
I’m surprised there aren’t more comments on this.
Basic training for everyone, not just those working on mechanical systems.
Discretionary traders, in my opinion, should use a journal and then test their win percentage against some real benchmarks rather than thinking they’re doing well, when then they just got lucky.
Cuervo, I thought so too. I thought it was very well done. I even (not that I’m an expert at all) learned a few things.
Most discretionary traders that don’t have excellent documentation of their trades will never know whether they are truly good, or just lucky. Or maybe one day they’ll realize, but then it will be too late.
Well, if it counts, I printed the article for further reading, it looks excellent as a learning tool for me. Just too busy today to read it though, unfortunately. I appreciate the link.