Test your strategy on at least 200 trades

The more trades you use in your back-testing ,the higher the probability that your trading strategy will succeed in the future.

The more trades you have in your back-testing, the smaller the margin of error, and the higher the probability of producing profits in the future.

You need at least 40 trades for a valid performance report. 200 trades are optimal, since the margin of error decreases fast from 14 per cent to 7 per cent with only an addition 150 trades.

If you test your system on more than 200 trades, the margin of error decreases at a slower rate. The next 100 trades only increase the confidence by 2 per cent.