// HOW-TO GUIDE
15 min READ
How to Backtest a Trading Strategy
Backtesting is the only way to gain confidence in your strategy. But most people "cheat" by looking ahead on the chart. Here is how to do it scientifically.
01
Use "Bar Replay" Tools
Tools like TradingView's "Bar Replay" allow you to hide future price action. This is the only way to simulate real-time decision making.
02
Sample at least 100 Trades
A sample of 10 trades means nothing. You need at least 100 trades across different market conditions to see if your edge is real.
Common Mistakes to Avoid
- /Changing the rules mid-backtest
- /Ignoring spreads and commissions in the results
The Drawdown Way
We teach a "Triple-Blind" backtesting method in our advanced courses to ensure your data is statistically sound.
Questions & Answers.
Is backtesting the same as live trading?
No. Backtesting proves the strategy works; live trading proves *you* can execute it. Psychology is the missing variable in backtesting.
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