Strategy evaluation steps?

The main idea of testing trading strategy is that it's kinda difficult to understand how to do it properly and gain profits from this process. In my opinion, testing strategy include several steps, which should be created specially for particular strategy. For example, if you built your strategy for cryptocurrency trading, then you probably don't have the same way of testing as it would be a strategy for ETFs. I believe that the main here is to try trade on demo in order to be convinced that startegy works and potentially can bring profits. Only after demo you can try trade on a real account with a very small amount of money and then with full amount.
 
1) Optimization and backtesting
2) Backtesting with out-of-the-sample dataset (data not included in previous step)
3) If results are good, analyze if forward data was use in 1 and 2 (or any other type of error)

4) Real-money trading with small volume
5) Real-money trading with full account $$

Most of people go from 1 to 5, and fail.
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SKIP#3b; unless you get into a losing streak;
in that case may want to[#3b] papertrade or go to 1share , if past profitable.................................................................
NOT sure what other trader note/ brain melts means???Knowing the difference between trading trend$ + counter\trend could benefit your brain + body + finances...............................................................................
 
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