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Backtest Your Trading Strategy: How to Set Up, Tools, Biases & When to Believe It
Backtesting is one of the crucial steps in trading irrespective of your trading style. Backtesting helps you to distinguish between a good trading setup and a bad trading setup, eventually saving you from unnecessary losses. It does so by revealing a win rate, average profit and loss, drawdown, losing streaks and performance of a given strategy across different market conditions.…