Trait 1: Execute Like a Machine (Not "I Feel Lucky Today")
Harsh Truth:
Backtests show traders who strictly follow plans have a 17x higher 3-year survival rate vs. impulsive traders.
Backtesting is necessary to test trading strategies based on historical data to assess whether we are good enough at analyzing or whether further adjustments are needed. traders who are lazy to do backtesting will usually have difficulty using certain strategies in their trading because they lack data to optimize their trading.
However, backtesting cannot guarantee that a trader will be successful in their trading. because it could be that the strategy can work very well on historical data but fail in the real market. but that is much better than traders who only trade based on their luck.
On the time that i had stepped my foot into the market on which i have backtested out for how many times in regarding about certain strategies, but this one is talking about on FOREX trading and not on cryptocurrencies on which you do need up to have its historical data on making use on neither MT4 or MT5 on which you can make use of it to test those strategies that you do wanted to test out. On the time or moment that i have been that hovering myself on cryptocurrencies this is the time that i dont see for it to be relevant. Why? Crypto is too volatile and very unpredictable on which making use of TA's wont be that something precise most of the time. It could move out without any patterns shows and could move out without any reasons behind with those movements and thats why its much more harder.
In regarding about on the number of successful traders, then i do heavily agree that the numbers or ration is just that less and thats understandable because trading skills isnt something that you can be able to learn up on a short time period. You do need up to spend up sufficient time and effort to make a good grasps into it and this something that needs up to have this kind of approach. Success isnt something that you can be able to know without trying out to deal on with. So far, after backtesting idea the best one will be also forward testing on which i do see this to be much more better but still wont be enough that giving out that assurance on making profitable trades but at least you are doing something which is right rather than on making blind trades.