Backtesting

« Back to Glossary Index

What is Backtesting? 

Backtesting evaluates the viability of a trading strategy by testing it on historical data. 

 

Explanation: 

It helps traders understand how a strategy would have performed in the past, which can predict future performance. 

 

Practical Example of Backtesting: 

ONE-SIGNAL offers backtesting tools so users can test their trading strategies against historical market data before going live.

« Back to Glossary Index