Backtesting Trading Strategies
Validate your strategies before risking real capital
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0 / 5 completedWhy Backtest Trading Strategies?
Backtesting is the process of testing a trading strategy using historical data to evaluate its performance before deploying it with real capital. Think of it as a time machine that lets you see how your strategy would have performed in the past.
The Harsh Reality
95% of retail traders lose money. Many could have avoided losses by backtesting their strategies first. A strategy that looks promising in theory often fails spectacularly with real market data.
Core Benefits
Objective Validation
Remove emotion and bias by testing with historical data
Risk-Free Testing
Identify fatal flaws before risking real money
Rapid Iteration
Test years of market conditions in minutes
Parameter Optimization
Fine-tune strategy variables for better performance
Past performance does not guarantee future results. Backtesting shows what would have worked, not what will work. Market conditions change constantly.