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Tutorial Step - The Prediction

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The fourth aspect to consider is what we expect from this idea, and this is highly dependent on the type of strategy.
For example, for a swing strategy, taking a position twice per month with a 50% hit ratio may be acceptable, but not for a scalping strategy.
Defining what we expect from the strategy in terms of trading frequency and hit ratio helps to determine if the strategy is worth pursuing or not.
If the tests show that the idea doesn't produce as many trades or as many good entries as is desirable, you may want to come up with a new idea.
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Tutorial Step - The Entry Rules
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Tutorial Step - The Testing Mechanism