The Importance of Backtesting Before Going Live

📈 Backtesting = Testing your trading strategy on historical data to check profitability & risk. ✅ Benefits: See if strategy works in different market conditions Understand drawdowns & worst-case scenarios Build confidence before real money trading ✅ How to Backtest: Choose 1–2 years of past data Apply exact entry/exit rules Track win rate, risk-reward, maximum drawdown Refine rules based on results 📌 Example: A breakout strategy tested on 2 years of Nifty data shows 62% win rate with 1:2 R:R → statistically profitable. 🧠 A strategy untested is just a guess. Backtesting turns it into a calculated plan