How to Test an Order Flow Setup

Before trusting an order flow setup, I want evidence beyond a few screenshots.

Suppose I want to test a strategy based on absorption at a previous session high.

First, I define what qualifies as absorption.

Then I specify the entry trigger, stop placement, target, and conditions under which the setup is valid.

Next, I review a meaningful sample of historical occurrences.

I record the outcomes, account for commissions and slippage, and compare results across different market conditions.

The important thing is to avoid changing the rules every time a trade loses.

A strategy should be evaluated according to consistent criteria.

The goal is to determine whether the setup has a repeatable edge, not to prove that my favorite pattern works.