Backtesting and Reliability
TrendMaster is a trend following system designed to help users enter positions at inflection points in a market cycle. It can be used in any trending market environment, but is unsuitable during periods of consolidation. Whilst TrendMaster makes selecting entries considerably easier, it does not replace the discretion of the analyst.
It is important to emphasize that TrendMaster is NOT a 'black box' trading system. We strongly advise that you backtest the strategy for your preferred market. You should also consider paper trading until you are confident in your ability to execute the strategy, and are satisfied with the results.
The strategy is discretionary, meaning it always takes a human eye to validate whether or not a signal is optimal. This can be based on additional factors such as support/resistance levels, other indicators, or signal candle size. The rules for entry, and trade management are dictated by the indicator, however, the market in which you trade and the phase of the market cycle will affect the reliability of the strategy.
For instance if you blindly follow all entry signals, you will often find yourself trading against the trend. We have provided tooling in the form of TrendMaster Pro to further assist traders in selecting appropriate signals to trade. Consequently, automated backtesting is hard to do. This does not replace discretion.
We encourage you to backtest TrendMaster before committing capital. If you would like to test the strategy before purchase, you may use TrendMaster Free. This version of TrendMaster has reduced features, but with a little effort from the user, provides exactly the same entries as the paid version.
Additionally, we will be putting more generic backtests up here in this documentation section.
TrendMaster Free, our free offering teaching you the basics.