When it comes to trading, there are two things that I do NOT believe in -
1) Paper Trading.
2) Back Testing.
Main issues with paper trading a trading system -
1) All trading systems will work well during certain market cycles and won't work well under certain conditions. You will most probably jettison a perfectly logical trading system because of poor results when you are paper trading. Or you could adopt a flawed trading system just because it did well during the 90 days you paper traded that system.
2) All great (and semi-great
) traders mention that success in trading comes from keeping emotions in check, position sizing, money management, risk management etc - which are all long term in nature. A trading system apparently contributes only 20% to your success.
I somewhat agree, because even a simple trading system -
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BUY when Nifty crosses 20 SMA line
Square off long position & SELL when Nifty goes below 20 SMA line
Square off short positon & BUY when Nifty goes back above 20 SMA line
.
.
and so on will be profitable in the long run.
But execution of the strategy is the KEY, which your 30 or 90 day experiment in paper trading will not show.