This is a question for all those who are doing backtests...
Do you open the chart and then try to apply the rules, while the right hand side is visible, or do you backtest by looking only at the left hand side, while bringing the right hand side one bar at a time?
I ask this because when I try to do backtests with the right hand side visible, i find that it does not include a lot of the surprise unknown feeling that is present when you do actual live trading. With the current volatile markets, it makes things that much tougher to implement in real trades that on past data.
Or is the backtest done only to find out the best possible outcome for a given method and to find out filters?
When testing automated trading systems, this kinda problem never really comes as the backtest is automated by the software, while with discretionary systems like those based on pivots, a key point is to identify pivots w/o knowing the future data.
I suppose I am facing the same problem that every beginner faces when trying to use pivots and reversal bars. It is dead simple to identify them in the middle of a chart, but quite difficult to identify the pivots and especially the reversal points on the right hand side of the chart.
-- no1lives4ever
