Backtesting trading strategies: less sorcery and more statistics on your side

Photo by M. B. M. on Unsplash

In this article I will review why backtesting is needed while defining trading strategies, I will provide an actual example of a backtesting setup including tools and steps and I will later describe which are the key statistical parameters/figures that will lead us to meaningful conclusions. The impact of these figures on profitability and risk management…