If you do not know how you trade (how successful or unsuccessful), then you will not be able to earn in the financial market. Before you start trading, you need to study your strategy. / Signal far and wide.
Statistics is needed to solve several problems:
- Psychology: reduce psychological stress. When you know that when testing the signal turned out to be cost-effective over a longer period of time, the losses incurred have a smaller impact on the psyche. This knowledge kills nervousness and gives confidence to enter without emotion (fear, loss of opportunity, fear of under-working, etc.)
- Profitability: get knowledge about your signal and check it for profitability (it gives profit or loss), as well as how long it takes to get a profit (dring month or two or more)
By collecting at least this information, you can already have a complete picture about profitability of the signal used.