Is Backtesting Enough to Guarantee a Trader's Success?

[milewilda]

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.

Since I learnt about trading, I have never back tested to know the strategy I’m using is okay or not. What I do most is forward testing and I can still know my mistakes when the market later plays out. I have seen many people back testing and using it as a very powerful tool for them to know the direction of the market using pst historical trend in the market. I see that it is an essential tool for most traders but since I have not tested it, I cannot ascertain it is for me. You as a trader must have gotten use to it and just want to be sure if it’s working for others. It is very important to know that what you see works for you may not work for others, it depends on how each person perceive the market and can tell the direction of it.

If you are a trader whose that been able to get engaged with forex or stocks trading then back testing is really that something that you cant missed specially if you are a full time trader or even that short term period then you would definitely be trying out to touch up this kind of strategy and this is something that very useful i should say but in speaking or talking about volatile market of crypto then backtesting i somewhat
utterly useless. Why? Movements of prices are really that too random and could really be able to mess up on whatever that you have done but having some strategies or analysis is much better
than to those who doesnt have. Right? If you do find out that this is something relevant or useful on your part then it will really be that ideal on including it into your analysis  rather than on having nothing at all.

[fikrett]

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.

Since I learnt about trading, I have never back tested to know the strategy I’m using is okay or not. What I do most is forward testing and I can still know my mistakes when the market later plays out. I have seen many people back testing and using it as a very powerful tool for them to know the direction of the market using pst historical trend in the market. I see that it is an essential tool for most traders but since I have not tested it, I cannot ascertain it is for me. You as a trader must have gotten use to it and just want to be sure if it’s working for others. It is very important to know that what you see works for you may not work for others, it depends on how each person perceive the market and can tell the direction of it.

If you are a trader whose that been able to get engaged with forex or stocks trading then back testing is really that something that you cant missed specially if you are a full time trader or even that short term period then you would definitely be trying out to touch up this kind of strategy and this is something that very useful i should say but in speaking or talking about volatile market of crypto then backtesting i somewhat
utterly useless. Why? Movements of prices are really that too random and could really be able to mess up on whatever that you have done but having some strategies or analysis is much better
than to those who doesnt have. Right? If you do find out that this is something relevant or useful on your part then it will really be that ideal on including it into your analysis  rather than on having nothing at all.

If it brings results - use it, basically.
If it isn't worth it - leave it. And don't invest your time into it.
Have an edge in something that brings you profit, it least try to 

[sarmrakib]

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.

Its a practice that you are doing before enter on the market. Live market is always tough to read. Its all about analysis, emotions end everything. Which actually not Work when you are on live trading. It is necessary to test your particular strategy before you enter on the market to understand if your trading are profitable or not. The live market isn’t same as you are doing it on demo.if you have enough confident after back test your strategy it could be increase your chance to make a positive entry and exit with a good amount of profit. Backtesting isn’t give you guaranty that you will win the trade but surely you will have a good idea.

[fikrett]

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.

Its a practice that you are doing before enter on the market. Live market is always tough to read. Its all about analysis, emotions end everything. Which actually not Work when you are on live trading. It is necessary to test your particular strategy before you enter on the market to understand if your trading are profitable or not. The live market isn’t same as you are doing it on demo.if you have enough confident after back test your strategy it could be increase your chance to make a positive entry and exit with a good amount of profit. Backtesting isn’t give you guaranty that you will win the trade but surely you will have a good idea.

It's a good way to go into VR mode, basically.
But then, the reality still awaits for you to make the real move and profit from it (or be rekt  ).

[EarnOnVictor]

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.

Are people still backtesting in trading? Those people must be novices in this "game." Backtesting is a very useless way to know if a strategy will work or if a trader will be successful in trading, they simply don't work. The reliable means of knowing the true capability of a trading system or the expertise of a trader is by forward-testing. This is a live testing activity that will truly show how your strategies work in real market conditions and also put you in live psychology issues in reality with the market's true dynamics.

[FortuneFollower]

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.

Are people still backtesting in trading? Those people must be novices in this "game." Backtesting is a very useless way to know if a strategy will work or if a trader will be successful in trading, they simply don't work. The reliable means of knowing the true capability of a trading system or the expertise of a trader is by forward-testing. This is a live testing activity that will truly show how your strategies work in real market conditions and also put you in live psychology issues in reality with the market's true dynamics.

It's wise just to do both, and then only do the real trading instead
However, everybody chooses what suits them best.

[Text]

Ah so it was a kind of tool? I really thought it was some kind of a practice, you know "testing" but it may be done in a different way or it was its other variation due to that "back'' word there. Anyways, yeah, there are no other crystal balls other than the literal crystal ball one but even that one is I think still highly doubtful if it really can tell the future. And if it is true, then that person who does that won't offer his service anymore in public for some pennies because they will just use it personally to make thousands of dollars every single time.

Yes. This is only the most realistic thing that we had and this is better than nothing, so for sure many are still doing this, since they also came here to try and see if they can multiply their money or not.

It's a rigorous method to analyze past performance, a historical simulation that allows us to test strategies in a controlled environment. While it's not a perfect predictor, it significantly improves our chances of making informed decisions. Although it has its limitations, it's essential to remember that past performance isn’t always indicative of future results. However, when used wisely, it can be a valuable tool, a kind of historical what-if machine. It helps us learn from the past without actually risking our money. While it won’t tell us the exact future, it can give us a better idea of what might happen. I think that’s why many people use it, it’s the best we've got!

[FortuneFollower]

Ah so it was a kind of tool? I really thought it was some kind of a practice, you know "testing" but it may be done in a different way or it was its other variation due to that "back'' word there. Anyways, yeah, there are no other crystal balls other than the literal crystal ball one but even that one is I think still highly doubtful if it really can tell the future. And if it is true, then that person who does that won't offer his service anymore in public for some pennies because they will just use it personally to make thousands of dollars every single time.

Yes. This is only the most realistic thing that we had and this is better than nothing, so for sure many are still doing this, since they also came here to try and see if they can multiply their money or not.

It's a rigorous method to analyze past performance, a historical simulation that allows us to test strategies in a controlled environment. While it's not a perfect predictor, it significantly improves our chances of making informed decisions. Although it has its limitations, it's essential to remember that past performance isn’t always indicative of future results. However, when used wisely, it can be a valuable tool, a kind of historical what-if machine. It helps us learn from the past without actually risking our money. While it won’t tell us the exact future, it can give us a better idea of what might happen. I think that’s why many people use it, it’s the best we've got!

The market is always changing, but sometimes, patterns can be seen and worked around - only if the markers for such moves do continue and you have the expertise to prove why they would  And even then, you may be wrong. That's how the market plays with you.

[fikrett]

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.

Are people still backtesting in trading? Those people must be novices in this "game." Backtesting is a very useless way to know if a strategy will work or if a trader will be successful in trading, they simply don't work. The reliable means of knowing the true capability of a trading system or the expertise of a trader is by forward-testing. This is a live testing activity that will truly show how your strategies work in real market conditions and also put you in live psychology issues in reality with the market's true dynamics.

It's true that it can't be a bulletproof method of going into a real position, however, as it was said, it may be used to see some patterns and historical charts to put them into perspective.
In the end, it's just a tool to have some more evidence and facts, and metrics to work with.

[alastantiger]

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.

[EarnOnVictor]

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.

Are people still backtesting in trading? Those people must be novices in this "game." Backtesting is a very useless way to know if a strategy will work or if a trader will be successful in trading, they simply don't work. The reliable means of knowing the true capability of a trading system or the expertise of a trader is by forward-testing. This is a live testing activity that will truly show how your strategies work in real market conditions and also put you in live psychology issues in reality with the market's true dynamics.

It's wise just to do both, and then only do the real trading instead
However, everybody chooses what suits them best.

In the end, it's a choice, but I tell you based on experience, doing backtesting is a waste of time, it always fails, you can quote me anywhere. It's easy to see it working and gets you excited but in the end, after you face the live trading challenges you will realise you were just wasting your time. And I wonder why you said the two should be done because, if you are already doing the live testing, why the backtesting again?

[SmartGold01]

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.

[Hamza2424]

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.

What tools or platform you actually use for back testing if you don't mind to share and why you think which one is better from other please mention that as well when you reply I will be looking forward to know why you really think this is necessary even when we are making profit although when we are making profit we tend not to waste our time on such testings while we can find some good entry point but you know what I agree with you on this.

But to clarify that we should do back testing after few weeks when we learn some new indicator or method to analyze the market once we think we have learned enough then start practicing it in real market by keeping the capital small. You are wrong though about the title as back testing is not enough we need more than that to make a successful trade.

[justdimin]

What tools or platform you actually use for back testing if you don't mind to share and why you think which one is better from other please mention that as well when you reply I will be looking forward to know why you really think this is necessary even when we are making profit although when we are making profit we tend not to waste our time on such testings while we can find some good entry point but you know what I agree with you on this.

But to clarify that we should do back testing after few weeks when we learn some new indicator or method to analyze the market once we think we have learned enough then start practicing it in real market by keeping the capital small. You are wrong though about the title as back testing is not enough we need more than that to make a successful trade.

There isn't a tool that would make backtesting any better for your future. Backtesting is backtesting, it laterally means you pick a strategy and then you hope for that strategy to do better in the future by looking at what it could have done in the past. So obviously, using whatever tool you have, the very best could be used, still wouldn2t change the fact that what it could do may not be what it will do.

This is why backtesting is a very risky way to move forward, a lot of people try to do it, but most of them fail and you shouldn't trust it at all. I am not saying don't do it ever, of course you can do it, just don't rely on it and doesn't matter what tool he is using, the result will not be changing. Use it for understanding the markets, but we have seen months where it goes up, and following month it goes down, using backtesting would give you great results on the good month that happened, and strategy will fail on the bad month that follows afterwards.

[Silberman]

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.

It is not really surprising this is the case, a backtest only verifies if the strategy can make profits when used optimally, however we know very well that no trader can execute a strategy to perfection, so when you think about it, it is basically impossible to get the same results you can get during a backtest, so for anyone doing this, it is critical they also test their strategy trying to simulate conditions more closely related to the reality they face before they determine if a strategy is good or not.