Your goal is to establish a system that is successful more than 50% of the time. The higher the percentage the better the system will be.

If your system checks out favourably during back testing you should proceed to trade it in REAL-TIME but using a DEMO ACCOUNT only.

It is most important at this stage not to put any real money at risk, because back testing is not reliable enough to prove a trading system's worth.

If after a month or two of REAL-TIME testing the system shows a consistent winning average of above 50% then you can consider making further adjustments to improve the average.

Each time that you make an adjustment, it is most important to go through the whole testing process again from the beginning, to ensure that the adjustment has made a favourable difference.

There is no reliable short cut to this process.

Make sure to only make changes one at a time and carry out the whole testing process for each change. If you make more than one change at a time, you will never be certain which of the changes were beneficial and which were not.

Finally, after all of your testing has been carried out and you are ready to fund a live account, it is essential to apply a system of money management.

This needs to be a rigid set of rules that might for example include - Never trade using more than 2-3% of your trading account on any one trade - and so on.

Good luck and happy trading.

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