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BACKTESTING A STRATEGY

 

When you have tweaked your strategy to perfection, you are ready to run it through the Tradeworks backtester in order to analyze how it would have performed historically.  The results of the backtest will furnish you with a lot of important information to help you evaluate your strategy. These include a wide array of statistical results such as PnL, RoE, Volatility, Win/loose ratios and many more (see illustration below). You can find more information about backtesting here.

While history is no guide to the future, backtesting a strategy is still very useful as it helps you ensure that there are no unforeseen errors to your strategy. Once you are happy with the results, we recommend that you front-test the strategy by running it on a demo account for a few days to see how it actually performs.

Backtester