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FREE EXPERT-4X ONLINE FOREX TRADING COURSE AND NOTES:
Disclaimer:-The information on online Forex trading presented on this website should not be regarded as forex or currency trading advice. Currency trading and fx trading is highly speculative and
should only be done with risk capital. Foreign Exchange prices rise and fall and past performance from currency trades is no assurance of future performance. This online forex trading website is a
currency trading information website only. Accordingly, we make no warranties or guarantees with respect to the correctness or validity of its content. Forex traders making use of the online currency
trading information presented do so at their own risk. The information provided herein does not take into account their forex investing objectives, financial situation or needs of any particular person.
This site is not intended to by used as the only source of currency trading information or forex education. It is important and assumed that traders use sound trading principles when using the online
forex trading information on this currency trading site. This includes trading common sense, sound money and risk management and full personal ownership of any trading decisions. Investors should
obtain individual financial advice based on their own particular circumstances before making any foreign currency investment decision.

    TESTING YOUR ONLINE FOREX TRADING STRATEGY BEFORE COMMITTING YOUR MONEY

    It always amazes us to see people who have attended a course, read a book or magazine about a trading technique
    and then go straight into live trading with that technique. In Forex trading it is important that you make any trading
    technique your own. You do this by thoroughly testing the technique many different time spans and market conditions
    so that you are aware of its strengths and weaknesses. Below are some checklists on the important aspect of trading:-

    1.        The purpose of back trading, paper trading and having post mortems (post transaction analysis)

    1.1.        Learning to apply the trading strategy in diverse trading conditions
    1.2.        Reduce the risk of losses and trading errors when trading live
    1.3.        Learning the nature of the Forex market
    1.4.        Optimizing the strategy or methods used
    1.5.        Building confidence
    1.6.        Creating Competence
    1.7.        To ensure all eventualities are taken into account
    1.8.        Making it automatic and spontaneous to spot opportunities

    2.        Back trading techniques (Using history to simulate live trading)

    2.1.        Using the time frame that will be traded referring to shorter time spans when appropriate
    2.2.        Using candles reflecting the highs, lows, opening and closing prices.
    2.3.        Applying manual, mathematical or electronic methods
    2.4.        Use exact trading rules especially for entry and exits
    2.5.        Back trade moving forward from the oldest information
    2.6.        Take commission, slippage, and interest into account.
    2.7.        Record keeping of results
    2.8.        Use multiple currencies and different time spans
    2.9.        Start with a high-level review


    3.        Paper Trading (Using a demo account to simulate live trading)

    3.1.        Ensure that the periods traded covers all 3 types of markets:- trending, trading and sideways
    3.2.        Use candles where possible
    3.3.        Using exact rules for entry and exits
    3.4.        Simulate live trading as far as possible
    3.5.        Record keeping of results
    3.6.        Use Multiple currencies and cross currencies


    4.        Post Mortems (Analysing the results of traded transactions)

    4.1.        Do a post mortem on every deal when paper and live trading and ask questions regarding:-
    4.1.1.        Entry execution
    4.1.2.        Exit execution
    4.1.3.        Lessons learnt
    4.1.4.        Stop appropriate
    4.1.5.        Limit appropriate
    4.1.6.        Where did the price go after exit
    4.1.7.        Hard copy filed
    4.1.8.        Review the daily, weekly and monthly charts asking the following questions
    1.4.3.1.        What opportunities were missed if trendlines were used
    1.4.3.2        What opportunities were missed if moving averages were used
    1.4.3.3        What opportunities were missed if momentum indicators were used
    1.4.3.4.        What opportunities were missed if channel trading or wave trading were used
    1.4.3.5.        What opportunities were missed if breakout techniques were used.
    1.4.3.6        Why were these opportunities missed and what changes should be made to the trading strategy.


    5.        Final Word

    Remember that paper trading or back trading can never truly simulate live trading because of the emotional aspect of
    trading. Your results will always be better in testing.
Training Menu
This trading course is intended to
be used in conjunction with our
Forex Trade of the day site
www.forextradeoftheday.com
which takes strategies and
concepts from this course and
applies them to day to day
trading. Also visit our
www.Expert-4x.com site for more
information
We hope that you find these notes useful and informative. If you have an queries or want to contribute your views to the
content of these note please use the contact us facility on this site. We welcome any exchange that will enhance your Forex
trading.