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Backtesting Trading Strategy
What Is Testing?
Successful trading starts with an idea – or a trading “edge” to beat the market. Backtesting looks at how that idea would have performed in the past. More and more professional money managers are using backtesting to improve their performance. Now you can now access that same institutional-quality research.
Why Backtest?
Wouldn't it be nice to know that your idea worked in the past? ...
Would you invest in an idea if you knew it DIDN'T work in the past?
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Is There a Correct Way to Backtest?
Yes, there is a correct way, and real trouble awaits those who do not backtest correctly. You'll not likely know you've stepped on a land mine until your account has already been damaged; sometimes permanently.
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