Episode 17: Why should you Backtest
It’s been said that back testing allows you to test your money management strategy, but is it really all that necessary? We have a lot of listeners asking for the reason and logic as to why backtesting is so important in this field, and here we are to answer just that. For our 17th episode we drill down the reasons behind the necessity of backtesting.
1:06 Getting an understanding of your strategy
2:16 You need to make sure that the strategy is PROFITABLE
3:36 KNOW your numbers
- Take note of the winning percentage
- Be aware of the risk to reward ratio
4:54 Making sure that you CAN execute the strategy