Dear Ed


I appreciate your straight forward outlook on life and your no nonsense answers. Please could you give some advice to point me in the right direction.


I am still in the early stages of my trading journey. I have read a no. of books (hence reading about you in Trading Wizards and Trend Following).


I have traded and lost money. I know why, I didn’t have a system. I thought I could predict where prices were going based on my intuition and indicators I had learnt about.


I now realize how critical it is to have good money / risk management in place. I also now realize that a disciplined trend / momentum based approach is probably best as no one can predict the future and that a trend based approach is probably most suited to my personality.


Please could you advise how I can go about testing some system ideas I have? There doesn’t seem to be a whole lot of information on back testing systems around,  or else there seems to be people trying to sell software to back test but I wouldn’t be able to trust someone else’s software so I would really like to do the testing myself, at least at first. Any Information I have found seems to be overly complicated or incomplete.


Would you be able to provide some guidance / resources on how one can back test trading system ideas.


PS. I enjoyed your kite-boarding photo, excellent. I have attached one of me surfing.