Should I test before I trade?

Who doesn’t know “The God of Cricket” – Sachin Tendulkar. Most of us will find one or other aspirant (in kids around us) to become Sachin – day in and day out. The burning question is why we still don’t have another Sachin till date- out of a population of 100 crores?? The answer probably lies in the Master’s lesser known routines.

Gary Kirsten, former India team coach, said in an interview once “ Tendulkar studies the whole book for the exam! He does not leave anything to chance. He will never finish a net session till he has made sure he has done everything that he feels is required to get ready for the next match. Sometimes it means facing 300 balls in the nets.. Sometimes 1500 balls!”

It goes without saying why it is so important to test your strategies on past data. Day in and day out, we as a trader make or break money. If you are losing money on your trades – rewind the market – sit back with open mind and look for gaps which were not visible when you were actually trading. And believe me – if you put in proper effort, the only word that will come to your mind will be – “Eureka” – this is what I missed.Oh! And if your strategies and winning and you think “C’mon, I am making money, why should I be testing??”. Believe me, Equity markets has brought a lot of top traders to taste the earth – in numbers more than you can count. Always look for improvement in your strategy or diversify to another strategy – Past data testing is the only solution.

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