Backtesting

Maximising trading success with strategy backtesting

Strategy backtesting is a powerful tool for traders, allowing them to assess the effectiveness of trading strategies using historical data. By simulating trades over past market conditions, backtesting provides insights into a strategy’s potential profitability and risks without exposing real capital. This process enables traders to refine strategies, set realistic performance expectations, and reduce emotional bias. Moreover, backtesting helps brokers improve client engagement by offering more reliable, data-driven strategies, which can increase trader confidence and activity. Overall, backtesting supports better decision-making, minimises risk, and drives greater trading volume and client satisfaction.