Before risking real money, backtest your strategy on historical data to ensure it works in different market conditions. For instance, if you’re developing a moving average crossover strategy for GBP/USD, test it on at least five years of data to evaluate its profitability and risk. Backtesting highlights weaknesses in your approach and helps you refine your plan. Remember, past performance isn’t a guarantee of future success, but it’s a crucial step in building confidence