I’ll take the other side of this trade. I don’t advocate for this type of “assessment”.
Why? See below.
You don’t need to have a “Win/Loss Ratio of 50% or more”.
You don’t even need to have a “W/L Ratio” of 70/30. You can be profitable at almost any ratio.
What matters is your return on capital and how well you preserve your bank roll (e.g. minimizing loss).
Take high probability trades.
Trade often, and trade small- book profit early and move on to deploying the capital to the next opportunity.
What if you never get above 49%? Are you never going to switch to live trading?
Quite plainly put, and mostly everyone on this forum will agree- the REAL lessons on trading don’t come until you have your own real money on the line.
Save up a couple hundred dollars, if it takes 2 weeks or 2 months, who cares. Treat that money as tuition- fully expecting to lose it. Don’t be stupid and go above 1 or 2 micro lots and you’ll learn more about yourself in 30 days than in 3 months of demo trading.
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Yes, every strategy / system should be back-tested to determine its efficacy and Expectancy Ratio based on the trader’s lifestyle.
Investing time to test a strategy / system is a much better deal than risking your life savings in the real market to determine whether that strategy / system works.
The trader could opt to skip this step and take a leap of faith by going straight-to-market with the strategy / system without first back-testing it. However, when the losing streak comes, will the trader be able to handle it psychologically or abandon it while searching for the next “Holy Grail”?
Probably not. A trader not willing to test a strategy for a decent amount of trades will probably move on to the next “thing”. I’ve been in that trap too.
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I fell into this “Cycle of Doom” when I first started Forex trading too.
Really glad that I met good people in my neck of the woods as well as trading educators who are willing to impart their knowledge and experience with me for free. 
Yup, having people to talk to who’ve been through the weeds already can keep you moving in the right direction.
There is a gap between theory and practice and then again between practice to live and being consistently profitable.
You can somewhat bridge that gap without taking any risk between the former two. But trying to bridge the latter two from practice will most probably involve pouring some money down the gap.
in my opinion, you are ready whenever you are ready to lose some money to develop as a trader.
Trading on a demo has its merits, up to a point but beyond that, you are just impeding your development as a trader. You can be consistently “profitable” on a demo, then go live and blow the account. Demo and live trading are not the same.
No one want to lose money, I get that but people spend money on their interests and hobbies all the time. Juts keep it under control. Live is the way to go and sooner or later, you have to go there if you are serious about this…
Just do it…
I would rather test with a real micro lot instead of a full demo lot.
It doesn’t have to be your life savings at stake.
This is more applicable when real money is on the line because psychologically speaking, demo money doesn’t do much, if anything to you.
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How many stories I’ve read of new traders trading way to big and of course losing it all.
If your trades are going profitable, you can start live trading. Invest little money at the beginning as the chances of making loss are more. It’s better to increase your capital slowly as you learn and gain some experience. In real trading, your emotions come into play but we need to restrict them and be positive in every situation. Learn, practice and stay optimistic. Good luck with your real trading 
Starting with a demo account is a good way to go. If you have a profitable and consistent strategy and you are confident about what you are doing, then you are ready for the real account.
When you consistently make profits for some months together.
I traded on demo account for a month and now I have started using live account with very small positions as I am still learning. Live account is fundamentally different as it involves real market, unlike the demo one. Once you start achieving your trading objectives, you are good to go.