Backtesting
Backtesting refers to the process of testing a trading strategy using historical data to evaluate its performance before applying it in live trading. By simulating trades based on past price movements, traders can gain insights into how a strategy would have performed, identify potential flaws, and make necessary adjustments. Effective backtesting involves careful selection of data, proper handling of biases, and the use of performance metrics to ensure reliable results. It allows traders to refine strategies, manage risks, and improve their decision-making before committing real capital.
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Historical Price Data for Backtesting: Sources, Quality, Preparation
Explore various sources of historical price data — both free and paid — along with the key factors that affect data quality. Preparation and cleaning.
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7 Steps to Backtesting Trading Strategies: A Complete Guide
This guide will walk you through the entire backtesting process, from defining your trading strategy to optimization analysis and validating your results.
