How do you test a strategy idea on demo?

A new idea deserves testing before money, but beginners often test by taking one live trade. The useful version: define the setup precisely, take at least 20-30 demo trades, and write down every result.

How do you test a strategy idea on demo? — risk-reward diagram
A risk-reward ratio of 1 to 2

How do you run a test?

  • how you define the setup precisely enough to repeat
  • how many trades you collect before judging
  • what usually kills the idea in testing
How do you test a strategy idea on demo? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide tells you how to read the test results.

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