Part 4 of our series with backtesting with PRO STR BT/BTX.
Backtesting Part Four 2023 03 28 - Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Note: the video is also available in our workshops page.
Also note, I used the term “drawdown” in this video somewhat incorrectly, but allow me to make the correction here in writing rather than re-make the video. So:
- the correct definition of drawdown: peak-to-trough drop (usually expressed as a percentage) at any point in time in the equity curve
- in this video, I used drawdown as ‘equity falling under the starting capital’. Strictly speaking, that is not correct. But with that little error in terminology, the main takeaways in the video remain valid.
