There are various ways to test the robustness of your trading strategies in MultiCharts. These are:
- Backtesting: Use historical data to test your strategies.
- Walk-forward Optimization: This technique evaluates how your plan performs across various parts of historical data.
- Monte Carlo Simulation: Run Monte Carlo simulations to assess the effects of erratic market movements and changes to the parameters of your strategy.
- Parameter Sensitivity Analysis: Modify your input parameters of strategy a little bit to observe how responsive the performance is to those adjustments. If little changes result in significant fluctuations in performance, your approach may not be robust.
- Review Performance Metrics: To assess overall performance and risk, examine important measures like the greatest drawdown, average trade duration, Sharpe ratio, and others.
