As a beginner, your forces should be on learning by doing and putting in the screen time, there are many free materials online that can be used as a starting point, they will provide you with the fundamentals, i suppose this is where you should start. after gaining an understanding of the basics...
your explanation makes sense, however you missed to include
There are many forms of backtesting, which includes Automated simulation, Market Replay Backtesting, Tick-by-Tick Backtesting and Bar by bar Replay Backtesting, each form of Backtesting has there pros and cons, personally i use...