Reading about a strategy is not the same as proving it works!

Reading about a strategy is not the same as proving it works!

Suppose a trading book teaches a moving-average crossover strategy. Instead of immediately risking money, define the entry and exit rules, backtest them on historical data, and record metrics such as win rate, expectancy, and maximum drawdown.

Next, forward-test the strategy in a paper account to see how it behaves under current market conditions.

Historical and simulated results don't guarantee future profitability, but they can expose weaknesses before you risk capital.

💬 Do you backtest a strategy before trying it in the live market?

#Backtesting #TradingStrategy