The simplest way to test your system is to find a charting software package where you can go back in time and move the chart forward one candle at a time. When you move your chart forward one candle at a time, you can follow your trading system rules and take your trades accordingly. Record your trading record, and BE HONEST with yourself! Record your wins, losses, average win, and average loss. If you are happy with your results then you can go on to the next stage of testing: trading live on a demo account.
You can create a spreadsheet, or table in a word processor to record your results. Since I am a programmer, I created a webpage to record mine into a database.
Trade your new system live on a demo account for at least two months. This will give you a feel for how you can trade your system when the market is moving. Trust me, it is a lot different trading live than when you’re backtesting.
After two months of trading live on a demo account, you will see if your system can truly stand its ground in the market. If you are still getting good results, then you can choose to trade your system live on a REAL account. At this point, you should feel very confident with your system and feel comfortable taking trades with no hesitation. At this point, YOU’VE MADE IT!
Another option would be to create an automated trading system using Meta Editor on a Meta Trader Platform. If you can program, or have a friend who can, this is a very powerful tool. You can use the strategy tester to then test it during different time levels and on different currencies.