5 Questions You Need To Have Answered Before You Back-Test Your Forex System

As 90-95% of new Forex traders lose money within the first 3-6 months this article helps to guide new Forex traders by asking 5 questions that the forex trader needs to know prior to back-testing their Forex system.

Let us jump right in…

1. What data type are you using (or going to use)?

I know this sounds strange, especially if you have experience from another market such as stocks as their generally is only one type of data source available. However, in the Forex market you can have up to 4 different data types: bid, ask, mid and indicative. Each have their own little nuances.