Building a Trading Plan & Strategy (Long-Term Success)
📍 Forward Testing vs. Backtesting
🔹 Backtesting – Testing on historical data (fast, but no emotions).
🔹 Forward Testing – Trading in a live market with no money at risk (slower, but real market conditions).
📍 How to Forward Test the Right Way
✅ Use a Demo Account – Trade exactly how you would live, but with fake money.
✅ Stick to Your Strategy – No changing rules just because it’s live.
✅ Track Your Results – Log wins/losses just like backtesting.
✅ Simulate Live Trading Conditions – Treat your demo like real money.
📍 When Are You Ready to Go Live?
You’re consistently profitable in demo.
You trust your edge and don’t second-guess entries.
You’ve handled emotions in demo mode.
🔑 Key Takeaway:
If you can’t make money in a demo account, you sure as hell won’t make money live. Treat demo like real money, and only go live when you’re ready.