1

300-3 Backtesting Guidelines

Go to H4 Timeframe. Make sure you don’t have any indicators just pure price chart.

Make you chart black and white, no grid, no period separator just the price itself.

Parameters:

A. Look for Major Support and Resistances in H4. If you don’t know how to spot major SnR,
please watch the webinar again.
B. Plot your Supports and Resistances using rectangle drawing in MT4. Supports must be in
BLUE and Resistances in RED.
Exact color of BLUE and RED are as follow

THESE ARE THE ONLY COLORS WE WILL ACCEPT IN 300-3 SnR Plotting. Failure to comply
will make your work INCORRECT. Following rules is very important, so I’m training you to
follow the simplest rules because if you can’t follow a simple rule then how can you follow
your rules in trading.

C. Once Supports and Resistances are correctly plotted, look for a RANGE or SIDEWAYS price
action. Since 80% of the time the market is ranging, we are expecting that once the price
reaches a particular resistance then it will reverse and will soon reach its support (Vice
Versa).

D. Once the price reaches a particular Support or Resistance, look for our trigger candles
(Inverted Hammer, Hammer, Bearish/Bullish Engulfing)

E. Entry will be the Breakout/down of the trigger candle.

F. Stop loss will be at the high/low of the trigger candle. SL at high if SHORT, SL at low if LONG.
 2
300-3 Backtesting Guidelines

G. TP will be at the major SnR. If you sell on resistance then the TP is near the support (Vice
Versa). Do not maximize the range in order to increase the RRR. Always allow for error (see
video for this).

H. Ensure that RRR should be atleast 1:2

WHAT YOU NEED TO DRAW IN THE CHART?

A. Draw the supports and resistances with their corresponding colors.

B. Note TP, SL, Entry on the chart. Use Microsoft Paint to draw a line segment for TP, SL Entry
(thickness number 2). Example will be provided.
Line segment colors are as follow

TP: GREEN

Entry: BLUE

SL: RED

C. All texts must be in Grey and Font: Arial Black, Font size: 10. Use this to note the RRR and
the Prices of Entry, TP and SL. Example will be provided.

D. Also note how wide the Range is in terms of points and pips use Grey color for the text. The
Range is the distance from the highest high to the lowest low of the sideways move.
E. All notes must be on the upper left corner of the chart.

OTHER REQUIREMENTS

A. There should be only ONE ENTRY, SL, TP and RRR per chart. This means that if the setup
occurs twice in a week. Then you will have 2 same charts but just different entries, SLs and
TPs.
 3
300-3 Backtesting Guidelines

B. Once everything is deemed correct, save the file and name it CurrencyPair_Date of Entry
(YYMMDD). Example GBPUSD_200519. Note that the currency pair name must be ALL CAPS.
This will help us sort all the files quickly and easily when everything is uploaded in the
master drive.

C. Log all the necessary data in the excel file given to you. This excel file will help you
understand how the market works and improve your entries and exits.

H1 REQUIREMENT

A. As you have noticed, I also gave the H1 price data. Watch the video on how to use the
strategy tester and indicators to fulfill this requirement.
B. Since every person is required to do 4 months of backtesting, each of you will have 4x20 =
approximately 80 H1 data.

C. All you have to do is run the strategy tester and log into our excel file how many pips did
your currency pair moved during the Asian Session, London Session and New York Session.

D. You are required to take a screenshot of each day. Save the screenshot with file name:
currencypair_PIPS_Date (YYMMDD). Example GBPUSD_PIPS_200518. Note that the
currency pair name and pips must be ALL CAPS.

E. This exercise will help you understand how the market moves and how volatile it is during
the 3 sessions.

FINAL WORDS

I know you are thinking why you need to comply with all the requirements of colors, texts and file
name. This is for your own sake because once you get access to the master drive you will have
probably hundreds to thousands of charts to look at. If the format of each chart differs then you
won’t develop your muscle memory to the system.

With a standardized format, you will be able to browse all the charts and easily identify the same
patterns that arise. With that, you will achieve mastery faster.

Lastly, as my mentors say, rules are meant to be followed. No matter how simple the rule is, you
must never break a rule. How you do anything is how you do everything. If you can’t follow a
simple rule outside trading then how can you expect yourself follow complicated and detailed rules
in trading.

Goodluck on your backtesting and I hope that these data and system will help you improve your
trading career exponentially.

- Edward Jin
 4
300-3 Backtesting Guidelines

Example for Charting

The format must always be like this.

0 Range:

1 Entry:

2 SL:

3 TP:

4 RRR:

In this chart, you get all the data you need in a glance and you’ll see that It is very easy to read.

HOW TO MAKE THE CHART PURE BLACK AND WHITE WITH NO INDICATORS

A. You will probably see your chart like this. Press CTRL + G to remove the grid and CTRL + Y to
remove the period separator.
 5
300-3 Backtesting Guidelines

B. Press CTRL + I or right click on the chart and click indicator lists to open the Indicators tab
then remove all the indicators.

C. Now press F8 or right click on the chart then click properties.

 6
300-3 Backtesting Guidelines

D. In the color scheme section, look for the Black On White settings and press OK. Now your
chart should look like this. Now go to H4 timeframe for your backtesting.