Chapter 10: Choosing the First Five Currency Pairs for Testing

Begin testing your algorithm with five key pairs: EUR/USD, AUD/NZD, EUR/GBP, AUD/CAD, and CHF/JPY. These pairs offer diverse volatility and liquidity, ideal for initial backtesting over a five-year period, including news avoidance rules. If successful, expand to the remaining 23 of the 28 major pairs. Follow up with six months of forward testing on a demo account, tracking results on www.myfxbook.com to evaluate performance against proprietary firm standards like win rates and drawdowns.