Summary: Quality of Trading Strategies is a problem of high importance. Inadequately tested strategies contribute greatly to the well-known statistics that over 90% of Forex traders lose money. However, the procedures to test Forex Trading Strategies have not been covered systematically, with main focus being on the strategy testing software. We describe our practices of applying classical principles of successful testing to evaluating quality of Forex Trading Strategies. We explain our testing methodology, ways to prepare test scenarios and approach to managing trading risks. Our study is devoted mostly to automated trading strategies, but we believe the results can be useful to all interested in Forex Trading.
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