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.
Backtesting is indeed crucial but it isn't a guarantee that you're going to make profits when trading. There's no guaranteed strategy to use in trading but all the steps that we're being asked to use will help us to get closer to our goals when trading which is to be successful. Depending on historical data will give you an idea what the market is going to do and most times it come out exactly as you predicted although there are times the market will go the opposite direction. To be guaranteed success as a trader, you need to do many things and then hope to be lucky as you need luck for all your plans to go as predicted. Don't be afraid to end some trades in the losing side because allowing such trades to continue can make you to lose more money. Managing your risk as a trader is so crucial that many traders fail to do this and this is the actual cause of their continuous failures.
You know lot of people has been too reliable on their strategy or feels so relaxed about techniques to make profits from it but at end they always incur much loses, even though it was back-tested they would always ends up losing. This is because there is no sure methods to trade but a trader can be disciplined enough to have a successful trading, although most times following the market trend also help because some profits can be achieved depending on the level of the trader's technicality.