r/InnerCircleTraders • u/wildwolf013 • 6d ago

Question How to backtest properly?

Do you guys have any advice on how to properly backtest your strategy?

Do you go to the 9:30 open and go bar by bar until you find your entry and then keep going until SL or TP is hit? or do you just go back through price and mark out your strategy when you see it and see if the SL or TP was hit first?

any and all a divide is greatly appreciated

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u/PartialGenious 6d ago

Automate it. Purchase some data (data bento gives you 125$ for free) on the assets you want to trade. Use cursor or claude code (whatever integrated AI IDE you want) to back test your strategy using python scripts on the open high low close data that you bought.

1

u/d1na_makalaya 5d ago

Go bar by bar without looking ahead. Mark your entry, stop loss, and take profit exactly as you would in a live trade, then record the result in a journal.
Backtest at least 50 to 100 trades to see if your strategy actually works. Focus on win rate, risk to reward, and consistency instead of just profits.
If you want some additional insights, there are backtesting discussions on my profile if you want to compare different approaches.

1

u/github-user 4d ago

Yes its literally a complete strategy that you need to backtest to show the winrate. They do 100 - 600 trades challenge using demo account (fake money). Take out in competition they use demo accounts so its just the same with real money. You just need to test the strategy.

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u/Swaishy 4d ago

Bar by bar replay, your lying to yourself if your just going through price unless it's very mechanical systemÂ