Why Backtesting Order Flow Matters
A setup that looks convincing on one screenshot isn't necessarily a trading edge.
Order flow charts can make historical reversals look obvious after the move has already happened.
That creates a risk of hindsight bias: we remember the examples that worked and overlook similar setups that failed.
To test a strategy properly, define the conditions before reviewing the results.
For example:
What qualifies as absorption?
Which market levels matter?
What triggers the entry?
Where is the stop placed?
How is the exit determined?
Are commissions and slippage included?
Then evaluate a meaningful sample of trades, including different market conditions.
A strategy needs evidence beyond a few attractive chart examples.
