Backtesting is the backbone of any solid trading strategy. It’s where you take your ideas and put them to the ultimate test—against historical market data. The beauty of backtesting is that it reveals whether your strategy has the potential to succeed before you risk real money. It helps you identify strengths, expose weaknesses, and fine-tune your approach, all while building confidence in your system. Think of it as your trading laboratory, where mistakes are lessons, not losses. Skipping this step is like flying blind in the markets; backtesting ensures you’re equipped with a strategy that’s battle-tested and ready for action.

ahhhhhhhh Backtesting….. Its a hate love relationship for me personally. I find it tedious but I would be lying if I said it didn’t help in the beginning of my journey. Do I do more of it now? Yes and no. I still back test test often but its not like how I used to backtest, sitting in front of the chart for hours and hours. If you’re lost and do not know how to enter and exit a trade, backtest. If you do not know how to mark up a chart, backtest. If you do not know how to create a bias int he market, backtest. Keep backtesting until it become second nature. Backtesting has helped me get to where i am today.