Last week I wrote an article about a situation that often stymies traders who are serious about learning a discretionary strategy. During forward-testing, many tools inadvertantly give clues as to what the next bar will do, rendering the effort useless.
One tool, however, presents a clean view of the chart at all times. That tool is Telechart by Worden Brothers.
Here’s an example. Can you tell from the charting (not the price action) what the next bar will do?
I don’t think so. Click here to see the chart with one more bar.
Forward-testing – done correctly – gives a trader the chance to see a trading strategy in action does bar by bar. Even though it lacks the emotional component of live trading, its a necessary step to learning discretionary trading. It does take real effort though.
If you’re serious enough to do forward-testing, then you owe it to yourself to set up an environment without “cheats” that cheat yourself out of the real experience. Telechart is the one tool in my kit that helps me do that.