What is back testing in trading and how we do it ?
During this time I rarely trade because I still prefer to keep the assets that I already have. But if you ask something like that here, I can only give an answer that is already available on the
Investopedia site, and I think what has been explained on the site is sufficient for you to understand it in general.
Backtesting is the general method for seeing how well a strategy or model would have done ex-post. Backtesting assesses the viability of a trading strategy by discovering how it would play out using historical data. If backtesting works, traders and analysts may have the confidence to employ it going forward.