No one likes to backtest. No one likes to forward test. Everybody just wants to trade live.
Yet the low barrier for entry, lack of rules from outside sources, and lack of quality system team up to destroy most traders within 12 months or less.
Ever stop to wonder why?
Nobody wants to put in the work.
Let’s look at this a little differently.
The average salary in America is close to $50,000 for a 4 year degree. This may be slightly off but the math is simple so I’m going with it.
Most traders that get on YouTube are looking to supplement or replace their income. Let’s just assume you’re looking to make $10,000 a year on the side as a starting goal.
You found a weekend seminar that for $2,000 will teach you how to trade and make $10,000 a year. You pay the fee and learn a ton of information and systems and strategies and you are good to go.
You fund another $1,000 into a trading account and promptly lose it all in 3 weeks.
Looking to make $10,000 on the side you are $3,000 worse for the wear. Why is this?
Because you spent 4 years to make $50,000 salary and thought you could make 20% of that after a long weekend and a few all nighters.
Reality Check. Treat this like a job. Trading should not be any different education wise than everything else. The goals can be different, but the timeline should at least be realized here.
New Plan. Every Back Test or Forward Test (DEMO) trade you do, consider it a $10 deposit into your trading account. Your account starts at zero, when it reaches $5,000, you’ve put in the time and work to unlock that money and go live if the system has been proven out.
Most traders can easily do 5 backtests a day whether its early morning or late nights. On the weekends you can take it off or push for as many as you can handle.
If you can do 5 backtests a day, 5 days a week, that’s 25 backtests a week.
20 Weeks is the minimum time you should expect to building your plan and proving it out before going live.
This is not a requirement, just my humble opinion. You just have to realize that professional traders treat this like a business, and you showing up to compete with them after a weekend seminar is not going to end well for you.
You need experience and confidence to succeed here. You can build that up over 20 weeks or longer, you cannot over a weekend study session.