My question is in regards to back testing a ‘Swing Trading’ system on the AUD.USD where trades can range from a few minutes to a couple of days.
For those of you that back test systems, how far back do you prefer to go. 1 yr, 2ys, 10 yrs? This may seem bit of a strange question, but I’ve found when back testing systems previously (stocks) that the further back you go the less relevant the results are due to fundamental changes in the market, i.e. mergers, splits, takeovers etc. For EOD systems I would assume the majority would prefer to go back historically as far as possible?
With FX intraday would you consider 12 months data enough to validate a system? I only have about 1 yrs reliable data, and the system over this period took (approx) 280 trades at an average of between 5 – 6 trades weekly. Results are very positive.