Here is a selection of books that will help you learn trading basics and feel confident on the market. Notice that all the books on the list are in English.
If you are short of time and need a quick yet sufficient summary about trading essentials, you can always read articles in our Forex guide book.
How to trade profitably in forex using genetic algorithms
Portfolio of strategies: What we are looking for
It is important to realize what we want to achieve with our strategies. We will discuss it in the first part.
Import of data
The first important step is to import data correctly and set them accordingly. This is the most important step, because the result of backtests and robustness tests depends on the quality of input data. If the quality of the data is poor, the result of the backtest will also be poor and not reliable. Spend time on this part and learn how to process the data correctly.
Generating an initial package of strategies
Once the data is set up, it is necessary to generate an initial package of strategies. Ideally we build 1000 to 2000 strategies and then we do all the robustness tests and select those that are most likely to be profitable in the future.
This is the crucial part. The robustness tests let you determine which strategies are most likely to be profitable in real trading and also how vulnerable they are to possible changes, such as a change of volatility, slippage, etc.
Walk forward matrix
Testing that uses the walk forward matrix method determines how reliable the strategy is and how much can be expected from it in the future. This is the most reliable test available.