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How to Backtest Day Trading Strategies

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Backtesting a day-trading strategy is different to backtesting one that uses swing trading. This tutorial will explain the differences and show you how to backtest an intraday trading plan.

A trader should create a trading strategy, choose the best software, track trading expenses, analyze the historical periods and make detailed analyses to back-test it.   

You’ll also learn how to determine when you should start trading strategies live.

Let’s now get into the details.

Table of Contents

A Trading Plan should be created

How to Select the Best Backtesting Software

Manual or automatic

The Market You Trade

Software and Data Costs

As much historical data possible

Monitor Trading Expenses

Backtest at the Right Times

Test your back honestly

Analyze the results

How to Avoid Backtesting Day Trading Strategies

How to know when you should go live with a strategy

What is Day Trading Backtesting Different From Backtesting a Swing Trading Strategy?

Last Thoughts

?

A Trading Plan should be created

The first step is…



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