After you’ve set your initial stop loss, chosen your method for calculating your trailing stop loss, and implemented all your money management rules, there is one last thing you should do. Back test your system. With out back testing you will be headed in the right direction, but you won’t know what to expect from your system. Back testing will also give you the confidence to keep going when you begin to experience the doubt that every trader faces at some time. You back test your system by applying the rules and conditions of the system to the stock’s
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