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![stock charting software market replay stock charting software market replay](https://i.ytimg.com/vi/h4LJcp7KALU/maxresdefault.jpg)
That might help if you’re testing one trading method or system. Many new traders spend lots of time (perhaps too much time) on a live demo. Develop New Methods and Refining Older Ones | Fast forward through data to analyze your strategies over different time periods Takeaway: Situations like this one–trading errors, missed opportunities, areas where trading tactics can be refined, etc.–is what the Market Replay function is designed to help you navigate. If you had been aware of the surge in volume, opening a second position (or simply maintaining your position) at a breakout of would have kept you on the right side of the market, exploiting the continuation of this short-term rally. You went long at, saw the divergence at, but completely missed the volume spike at and the diamond shaped consolidation at. Now, you get a very different picture of price movement, as shown below:Īs you replay the situation candle by candle or in (simulated) “real time,” the final result may emerge more clearly. What other indicators might have informed your trade (what turned out to be a major lost opportunity)? Well, use Market Replay to try it again in simulation, this time, adding the very basic “volume” indicator to the mix. As a result, you missed out on the entire run up to. You entered a long position upon a breakout at, riding it to and then closing out your position on the RSI signal that is showing a major divergence between price and momentum. You traded the ES on a five-minute time frame. If you are a day trader, you can probably see the advantage that Market Replay provides–namely, your ability to study your trading errors and seek out adjustments that might have made your ideas more profitable or robust. Want to “re-trade” yesterday’s ES market, or this morning’s CL prices, or any other market that may provide insight toward your trading thesis? That is what the Market Replay was designed to help you accomplish. Optimus Flow’s Market Replay is a “history player” that allows you to test nearly any trading instrument of choice. It’s your “market history in a box,” that you can use to study how you might have reacted to a particular market situation, how you might have avoided a mistake (in live trading), and how you might have taken advantage of a market opportunity that you previously didn’t see. Fortunately, the Optimus Flow platform offers a Market Replay feature. The best compromise may be to test in real-time, but with the capacity to rewind and fast forward. But testing in a demo environment takes a lot of time–possibly more time than you can afford to take. To get a real feel for a particular trading idea, you have to experience it in real time. Why? Because a system backtest can’t simulate the stress you may encounter when facing volatility, drawdowns, and losing streaks.Ī backtest is devoid of human emotion. Many traders would’ve dropped like flies. Now, would you have been able to stomach the drawdowns and volatility across 12 months in order to have made that 75% return?
![stock charting software market replay stock charting software market replay](https://i.ytimg.com/vi/aWeApoH0Z_4/maxresdefault.jpg)
![stock charting software market replay stock charting software market replay](https://tvblog-static.tradingview.com/uploads/2017/11/bar_replay_2.png)
Sounds like a great method, doesn’t it? Who wouldn’t want that kind of return? Imagine a futures trading method that yielded a 75% return over a 12-month period. It does not mean that a successful back-test will translate into real-world success, but it might help you weed out the really bad ideas that, at first, may seem great.īut as we test our ideas to help reduce trading risk, there is another risk that back-testing can introduce into the process: a kind of “testing bias” that has no resemblance to live trading. Lots of traders like to back-test their trading ideas, and there is certainly no harm in that. So, before you risk your money on your next great trading idea–be it a set-up, method, or strategy–you had better be sure that the odds are in your favor.īut how might you determine beforehand whether your idea might have a strong chance of working or not? That is what testing is for, something that you’re probably well aware of. We all know that futures trading is a risky endeavor.