Past price action will teach you immensely about trends, reversals and candlesticks. But there’s a huge difference between watching full charts and testing everything manually, candle-by-candle.
Crucial aspects on how to backtest the proper way:
• Set apart at least 1 full hour per day of focused, uninterrupted backtesting.
• Do not skip a day during these 3 months. Consistency and focus are essential.
• After these 90 days, you will have almost 100 hours of PA under your belt.
• Do not focus on just one instrument. Pick 1 FX pair, 1 index and 1 commodity.
• Do not perform your tests on timeframes under M15. Focus on H4 or Daily charts.
• Although they say price is fractal, lower TFs are more prone to liquidations and noise.
• Objective is to identify the Easy Money Trades on clean and easy to read charts.
• TradingView replay mode is very limited imho and does not provide proper feedback.
• My preferred backtesting tool is below, I’ve used it for years and it simply rocks.
• Focus on Max RR, Ideal Average RR, Trades by Sessions and the Win Rate.
• My advice is start with a 1:1 RR for every trade, then optimize vs. your stats.