You Are Backtesting, You Just Don't Realize It

Backtesting is a trading superpower.

When I ask traders if they have experience with backtesting, most of them say no.

But the truth is, many of them do have experience backtesting - they're just not calling it that.

If you're keeping a log of all the trades you're making, then you're already "backtesting" in some sense.

Running a backtest is not all that different from analyzing your trade journal.

The difference is that a backtest is entirely theoretical, while the trades you actually took are real.

Think about how long it would take to make trades, log them to a journal, and then analyze them once enough trades have accumulated.

It could take months or even years.

Backtesting is your cheat code to trading confidence.

And you're probably already doing it on some level without realizing it.

-Dave

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