All language subtitles for TraderFXBuchacali 001 - 2

the markups, live back testing
and forward testing in the next

successfully long term without
having to risk your money on it

effective. Well, what you could
do is actually mark up a trade

your account while you're
testing but allow you to

win or lose as you can see this
is lost what it's going to do

following these tested
strategies work. You actually

opportunity from this supply
zone. And potentially this may

at this example on Euro USD.
We're looking for an hourly

our plan, this is what we're
looking for, happy days. But

process of this very very soon.
But let's talk about the final

traded into. So this is our
overall move, this fits in with

what works, what doesn't, what
can be changed, okay? Doing

ways to build your confidence
as a trader and actually see

going to do is allow us to
slowly scale through the price

forward testing and actual live
market trading but what it is

and it's one of the most
effective ways and efficient

how we would feel throughout
the trade now it's not going to

Now what this allows us to do
is first of all see whether or

couple of videos. So hope
you've enjoyed this and I'll

trading account. So that is all
for this video now. We're just

this move on your real account
to test it you would have just

account if you keep taking test
trades on your real live

moves without taking real
losses and if you had taken

like so, target your area of
interest for your buyers and

this is going to do is keep a
necessary stupid losses out of

then actually let this play out
but don't execute a move. What

and we thought hm maybe we
could actually get a sell

that's in your plan yet and you
just want to see if it's

don't want to go in live
because it's not something

what we may have on the way
into that is a short trade,

ways to actually back test. So
we're going to get all into the

like this. Let's say then right
now in the market we're looking

of fear or out of you know fear
of reversal. So all of these

trade would we have gone ahead
and close the trade there out

and see okay when would we have
moved our stock loss to break

strategy to market successfully
and it also allows us to see

not we can apply our strategy
to live markets because if you

not you can actually bring
these things into your strategy

taken a really unnecessary loss
which is going to hammer your

this has been a clear example
because as I said you can test

is give you a good basis of how
long things take to win how

we're going to do now is start
talking about the processes of

long things take to lose and
give you an idea of whether or

going to shoot back over to the
presentation and then what

minute time frame while we were
waiting for this trade to occur

more often. These low time
frame moves to sell into long

actually see which trades
played out and which trades

get from this is the benefit of
seeing how long things take to

term buying moves. Maybe you
want to test this idea but you

type of back testing. Forward
testing for sake is something

be something you want to look
to bring in to your trading

the most effective, most
efficient, and one of the best

okay? So let's say for example,
we were here on the three

bullish move to occur from the
demand zone that we've just

this is going to set you miles
ahead which is why I say it's

things can be considered when
we do this live back testing

give us the emotional feeling
and the mindset the additional

stress and real emotional
feeling that we get from the

even when would we have changed
you know anything about the

can do this successfully you
can almost certainly apply this

and they actually just give you
everything you need to see. So

button on the bar replay tool
see if our trade gets triggered

structure then we have a supply
zone at this point here which

wherever we are. So we use this
nice tool here as we can see we

didn't have all of this
experience. So this is how

okay? A lot of things can come
down to intuition if you have

just building a real clear
pinpoint eye for the markets,

to actually be profitable or is
the losing ratio too high.

strategy work consistently and
does it win enough of the time

our trade so that is all four
of our rules in play so as we

going to know where's the best
place to sell from or buy from

can see sell limit on the
bottom of the zone here

if we scale back to the price
back here we can see okay we

targeting previous demand zone
which would be this zone here

the supply zone in the
downtrend so the supply zone

this move from this we can
actually see where in the zone

of structure so we can mark
that out then we can see find

the best case scenarios for
this trade okay so if we scale

back to here then let's have a
look at this initial setup well

mark up trades accordingly.
This is our trading plan for

for in the markets. What we do
in a markup scenario is simply

this example's sake. First of
all we want to see a break of

markups as I said is the first
step in back testing and it's

different benefits so what
we're going to do now in the

fit our rules. So what we can
actually do is take a markup of

We don't want to take it though
because it doesn't completely

find refinements to our rules
and new rules that we can

important as well. So we're
going to cover those and I'm

forward test. So we have a
trade now for example and we

to use the most overall to be
fair. But the others are very

do is give you a basis a
starting point and actually

replay tool to scale back to
the start of September 2020 and

the live testing. The second
way to back test and probably

you have the benefit of
hindsight on your side. When we

We're essentially trading live
but using a past price data.

executed in this way and so on
okay so while markups don't

entries would be for trades for
example the bottom of a zone or

for. So if we have a rule to
sell from supply zones we go

through and look for the best
place in supply zones or how we

the trade plays out. So as you
can see the markups don't

these are essentially the
picture perfect setups that

should take when you come to
back testing. If you have your

this zone and then what we can
do now is size up the trade

zone on the market we could go
ahead and then put a sell emit

one. So the three main ways to
back test for me are first of

the breaker structure supply
zone sell limit target previous

you're going to spot things
that you wouldn't spot if you

Things like this are going to
come out the markups as well as

supply zone and the sell limit
of course all work very nicely

two methods of the plan the
break of structure and the

so this is good to actually
test our strategy and see it

is the best place to sell from
do we want to sell from the

do these live back testing we
don't have that hindsight.

previous demand in the trend
now this one leaves a lot of

Then we want to set our sell
limit at this supply zone and

has broken that structure so we
can ahead and plug this supply

and then as we do for our
targets we want to target

we can see we are clearly in a
downtrend so this is our break

back testing in these three
different ways here's a quick

make a mark up of this before
the trade plays out and then we

scale back to somewhere in
price normally the start of a

week or a month and then we can
actually scale price forward

are important all of them will
be used continually throughout

of back testing we use a bar
replay tool to scale back in

of back testing. In this type
of back testing the main type

think it's going to you know
take place over the next week.

refinement to your trades but
may be different and maybe out

have a very clear demand zone
around this point so what we

markups work. We're going to go
through the process in depth in

is is not getting the market
experience but learning the

back testing method. Now the
third and final method of back

this is is actually when you
identify possible trades in

and then we see a 6 R trade
using those rules in our

usually when you're trading
live you are going to enter

in supply and demand zones.
We're going to know does this

best things to look for. So if
we do enough of these, we're

what that's actually going to
do is let us trade through

structure then we want to find
a supply zone in a downtrend.

the low point of the zone gives
us a very nice trade so then

would have missed the
opportunity but selling from

the trend back here for our
targets now what we could then

do is look for these rules to
have been met and actually find

scale back to price and then
see how our rules play out and

effective is live back testing.
This is your standard back

live market. So let's say we
wanted to collect data on

show you the best possible
rules and the best way to tweak

supply zones is this this rule
is redundant this rule is best

give you that live trading
experience what they actually

our trading on a day to day
basis and they all have

doing is giving you a clear
image of what you need to look

example of the markup process.
Now when we're doing the

that we learn to identify the
best possible things to look

open space to be filled so for
this example we'll target into

really give you a clear
indication of market experience

rules you have your strategy
the first thing you should do

current market prices so not
past price data. Uh enough to

of your rules and you don't
want to take it live. But you

can allow the trade to play out
by actually using this forward

in this instance have been
triggered in and then see how

trades but perhaps you see
something that may be of

There are three different types
of back testing that I carry

were to use the same rules as
we used in the previous example

we're looking for and then come
back in a few days and see how

price and then we trade it as
if we're trading live from

the trade performed and from
this what we can actually do is

forward testing. Now markups
are the very first step you

that chart right now put our
information in there on what is

the next video but for now
let's move on to the next type

demand we could see here right
first of all we have a breakup

and trade it as if we're
trading live by using the

September 2020 without knowing
what's going to happen next as

button like this so for example
then in this opportunity if we

enough experience and you've
seen the market enough times

common, most popular and the
most effective and efficient

trading plan so really what
we're doing here in the markups

testing that I'm going to talk
about is forward testing. What

our fun rule was target demand
zones in the previous trend so

working nicely and it also
gives us a lesson of okay in

can do is mark this up and we
can use this as a target for

if we were trading a live
market. So this is the most

this example if we'd sold from
the midpoint of the zone we

zone well we can see from this
in this example our original

that broke the structure was
indeed this one at the top of

midpoint of the zone do we want
to sell from the low of the

September 20 20 for example.
What we can do is use a bar

next couple of videos is get
familiar with this process of

testing where we use a bar
replay tool to trade through

first of all we can see at this
point a break of structure and

then we want to use the demand
zones in the previous trend so

not really getting you the
market experience but what it's

the most important, probably
the most efficient and

span of 10 to 20 or 50 trades
the best place to enter from

if we do the markups we can
actually see overall over say a

do want to see how it reacts.
What we can actually do is

going to show you how they can
benefit you on top of this live

can refine those supply zones
things like this where the best

actually mark them up and track
them with no live entry. Now

price action and mark up the
best case scenario trades. So

market back testing method and
it's the one that we're going

previous price action and
previous data as if it was a

is start forming markups. To
collect we run through previous

your rules things like that
before you actually get into

implement into our trading so
all of these methods of testing

the midpoint of a zone or the
top of a zone things like this

all markups. Second of all live
back testing and third of all

follow the rules in our
strategy. The idea of this is

processes we're going to talk
about what these different

types of back testing are and
how we complete each different

see you there.

out and they all have different
uses. So before we get into the