Backtesting Trading Strategies - Why Do We Need it in India?

Algotest India27 Apr, 2022Finance

Backtesting allows a trader to simulate a trading strategy using historical data to generate results and analyse risk and profitability before risking any actual capital.? For us, the primary reason to backtest is to determine profitability and risk. How good was the strategy?s return historically? And how much did we risk to make that return? A backtest answers these questions quite well.