What is back testing in trading and how we do it ?
Backtesting is like going back in the past and testing the market. For example, you want to do trading in BTC and you do not want to follow anyone's signals or advice. You want to make your own strategy. What does strategy mean? It means you want to understand the candle's behavior of BTC by going in time via setting a timeframe let's say a time frame starts from 1st January of 2023.
Then, you will try to understand the market behavior from 1st January of 2023, so that you could understand the overall sentiments of the BTC pair that you could use the same strategy which you used in the backtesting to yield more profits. But that's not going to happen every time because the market is so unpredictable and by analyzing past data you can only predict the future market from many possibilities.
You asked how can I do it. There are many platforms in the market, such as
Trading View ,
GoCharting, Ninjatrading, and Meta Trader. You can use the first ones for free but with limited resources.
You can know more about BackTesting from the following YouTube Links.
https://youtu.be/SoWs-yklICMhttps://youtu.be/OwvElpGjLKI