Browsing Tag

backtesting

How to Know if a Strategy Works

The sure-fire way to know a trading strategy works, is to start using it and watch your account steadily grow. But how do we know if a strategy is going to work before we put money into it? Well, we can't know for sure what will happen;…

On the Limitations of Backtesting

You might have noticed, especially if you are getting into trading, that traders are confronted with two bits of crucial advice that seem somewhat contradictory: On the one hand, brokers will insist in all their disclaimers that "past…