How crucial is backtesting in trading?

Backtesting is the cheapest training ground.

We learn to read opportunities without having to risk real money.

It's not just for testing strategies, but for measuring their probabilities.

How often the system loses, what risks have to be accepted, and what potential rewards there are each time it wins can all be calculated here.

The more position data tested, the clearer the system's character.

It's not about always being profitable, but knowing what can be expected from that system.

Trading without backtesting is like betting without knowing the odds.