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Risk & Money Management · Trading Strategies · 24:00 video · Urdu / Hindi

How to backtest a trading strategy like a pro

Lack of backtesting is one of the main reasons traders fail. This lecture shows how to backtest properly, and the mistakes that make a backtest useless.

Dr. Qazi Abdul Basit
Video lesson by Dr. Qazi Abdul Basit, Ph.D · Forex & Gold trader since 2013
Notes by the Qazi Forex Tips team · Updated 23 October 2026
Watch in Urdu / Hindi · 24:00·Open on YouTube

In this lecture

  • Why missing backtests make traders fail
  • Writing your strategy down first
  • Choosing backtesting software
  • Testing on the hours you really trade
Dr. Qazi Abdul Basit
Dr. Qazi's takeIn his own words, from his lectures and teaching

Not backtesting is one of the main reasons traders fail. Write your strategy down, choose your backtesting software, and test on data from the same hours you normally trade; many traders make mistakes here.

From the lecture

A written plan you follow, and the patience to skip a trade when the setup is not there.

How Dr. Qazi teaches

Lesson notes

Step 1: write the strategy down

Entry, stop loss, take profit, timeframe, pairs, trading hours and risk per trade. If a rule is not written, you will change it during the test without noticing.

Step 2: test like it is live

  • Use software that hides the future candles, such as a replay simulator.
  • Test on the hours you really trade. Forex trades around the clock on weekdays, and Asian, London and New York sessions behave differently.
  • Record every trade: date, setup, result in R.
  • Test at least 100 trades across different market conditions.

Step 3: read the results honestly

Look at win rate together with average reward, maximum losing streak and drawdown. A strategy with 40% winners can be good with 1:2 trades; one with 70% winners can lose money with poor exits.

Khulasa (Roman Urdu / Hindi)

  • Pehle strategy likhein: entry, SL, TP, waqt, risk.
  • Future chhupa kar test karein (replay simulator).
  • Wohi ghante test karein jin mein aap trade karte hain.
  • Kam az kam 100 trades, losing streak aur drawdown dekhein.

Questions

What is backtesting in forex?

Testing your trading rules on past price data to see how they would have performed before risking real money.

How many trades should a backtest have?

At least 100 trades, covering trending and ranging markets, to get results you can trust.

Is manual backtesting better than automatic?

Manual backtesting suits discretionary price action rules and trains your eye; automatic backtesting suits fixed rules coded in an EA.

Which software is best for backtesting forex?

A replay tool that hides future candles, such as QFT Replay Simulator in MT5, Soft4FX, Forex Tester or TradingView Bar Replay.

Why do backtest results differ from live trading?

Spreads, slippage, emotions and changing markets. Use a safety margin and start live with small risk.

Can I backtest on MT5 for free?

MT5's Strategy Tester is free for EAs. For manual practice you need a replay tool; QFT Replay Simulator has a free demo.

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Education only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.