Why A Trader Must Do Backtesting of Any Trading Strategy in 2022 Markets?
Updated: Jan 27, 2022
Most people I admired a decade ago have quit trading.
Less than 5% of my trading inspirations are still in the market. This is a terrible fact.
Trading is an emotional game. If a trader cannot control his emotions, then he tends to commit mistakes.
Then, how to control emotions?
There are many ways – but the #1 method is to develop high conviction on your trading setup.
And Backtesting is the only way to increase your conviction on the trading setup.
What is Backtesting?
Backtesting is a process of analyzing the performance of a trading strategy with historical data. Traders use the results to compare, fine-tune trading strategies to get the maximum benefits in live trading.