Backtesting is a crucial tool for me, as it provides valuable data on the potential performance of my strategies before applying them in real markets. It allows me not only to optimize my strategies but also to manage risks and increase my confidence in my trading decisions.
I recommend doing backtesting at least twice a week, even if you are profitable; it is a very powerful tool.
Agree with almost everything you said about backtesting it has been a very good way of actually improving your strategy and learning from your mistakes. Backtesting helps you build your own personal strategy instead of just following others strategy. Backtesting gives one confidence when they see a similar setup they have done before and it gives one confidence in a strategy. This with a very good risk management makes one have a very good trading psychology which is hardest thing to get over and if done Makes one a great trader.
Backtesting is always going to tell you if a strategy will work for a particular pair or not so certainly backtesting is a great idea to be a successful trader. But one thing you need to understand backtesting is just actually giving you information of the past trend or simply the history of the pair, but does this guarantees success; it’s a No because past even are not usually indicative of future success as such backtesting gives you a better edge of getting a good result but it doesn’t necessarily guarantees the results