I don't really understand people who pick up new trading strategy without proper backtesting. Such people just trust the information that they get from the Internet. Backtesting is a must-do when you need to test some trading ideas, otherwise, you are sure to lose lots of money and blow your deposit.
Sallem posted: I don't really understand people who pick up new trading strategy without proper backtesting. Such people just trust the information that they get from the Internet. Backtesting is a must-do when you need to test some trading ideas, otherwise, you are sure to lose lots of money and blow your deposit.
I believe that such tool as backtesting should be used by every trader on Earth. Every indicator, strategy, robot or any kind of financial ideas should be tested very carefully and thoroughly before implementing it using your real money.
Backtesting is an extremely important aspect of developing a trading system. If created and interpreted properly, it can help traders optimize and improve their strategies, find any technical or theoretical flaws, as well as gain confidence in their strategy before applying it in live trading.
Backtesting is necessary when you are looking forward to using this or that trading strategy. Before implementing it, you'd better check whether it works with the historical data. There is an opinion that if something had a tendency to behave this way it is still not an indicator that it will behave the same way in the future. Judging by past experience, the vast majority of patterns keep their actuality.
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