First AI chart analysis freeTry itFirst AI chart analysis freeTry itFree analysis usedGo ProUnlimited AI chart analysisGo ProUnlimited AI chart analysisOpen
Strategy & Testing

Forward testing

Intermediate

Also calledpaper tradingdemo accountdemo

Trading a strategy in real time, first on demo and then with very small size, before scaling up.

In practice

Forward testing checks whether backtest results survive real time, where candles form slowly and the right side of the chart is unknown. Traders run the strategy on a demo account or with very small size and compare the results with the backtest.

It also tests the trader: whether the rules can actually be followed at the pace of a live market.

What to watch for

Demo fills are better than real ones, and trading without money at risk feels different. Treat the first real trades, at small size, as the last stage of the test.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
  • Final exam and certificate