Algo trading

All about Backtests in Tradetron

What is Backtesting

Backtesting is a process by which trading strategies are tested on historical data. Due to the sheer amount of data and computation need, backtesting is a very resource-intensive process. Using historical data, we can get an idea of whether the trading idea/strategy is performing as expected or not. Backtesting is done as a preliminary step before deploying the strategy in a live market.