Backtesting

Backtesting is a method used in finance and trading to assess the viability of a trading strategy or investment model by applying it to historical data. The primary goal of backtesting is to evaluate how well a strategy would have performed in the past, providing insights into its potential effectiveness in real-world trading conditions. ### Key Components of Backtesting: 1. **Historical Data**: Backtesting relies on accurate historical data for the assets being traded.