Scientific Backtesting & Forward Testing Methodology
How do you know your ICT trading system is working effectively? The answer is you have to test it with actual statistics. **Backtest (Check the past)** and **Forward Test (Check the future)** are two mandatory steps to help you build strong trust in the system, helping you not to be confused when you encounter a series of consecutive losing orders.
1. Backtesting Process 100 Scientific Standard Commands
Use the Bar Replay feature on TradingView to rewind the past of a currency pair (for example, the past 6 months):
- Principle: Absolutely do not look at the chart in advance. Analyze each candle and record orders as if you were trading live.
- Record data: Create an Excel file to record: Date and time, Setup used, R:R achieved, Win/Loss orders.
- Target: Collect data of at least **100 orders** of consecutive trades of the same setup to calculate actual Win-rate and average R:R.
2. Forward Testing: A Step Before Trading Real Money
After having good backtest results, you need to Forward Test (real trade on Demo account or very small Cent account) for at least **30 days**:
✔ Test the ability to match actual orders and the impact of Spread and Commission fees from the exchange.
✔ Practice the psychology of waiting for candles to close in real-time without being urged by emotions.
✔ Only when the Forward Test account has a steady positive profit for 1 month, are you ready to invest real money or compete in funds.
Trade disciplined and trade well! If you have any questions about this lesson, join our Telegram community to discuss.
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