Building a Trading Plan & Strategy (Long-Term Success)
📍 Why Backtesting is a MUST
✅ You see if your strategy actually works before going live.
✅ It builds confidence—so you trust your setups.
✅ Helps you refine and improve your edge over time.
📍 How to Backtest the RIGHT Way
1️⃣ Pick a Market & Timeframe – Are you testing Forex, indices, or gold? 5M, 1H, daily?
2️⃣ Set Your Rules – Define EXACTLY what qualifies as an entry. No guessing.
3️⃣ Replay Past Data – Use TradingView’s replay tool to test your strategy on historical data.
4️⃣ Log Every Trade – Win or lose, track your results.
5️⃣ Analyze Your Results – Win rate, risk-to-reward, best and worst setups.
📍 What You’re Looking For
Win rate – A solid strategy should be profitable over 50% of the time with proper R:R.
Risk-to-Reward Ratio – If you’re risking $10 to make $30, even a 40% win rate can make you money.
Patterns in Wins & Losses – Spot what works and what doesn’t.
🔑 Key Takeaway:
If you can’t prove your strategy works in backtesting, why the hell would it work live? Backtest, refine, and THEN go live.