Following on from my prior post speaking a little about trading systems (here) and while on the subject of systems I wanted to cover an advantage or two of backtesting.
Backtesting obviously allows you test to see how your trading idea or plan played out in the past. The process can be very rewarding because in order to do this you need to really clarify your approach so that you can get it into computer code. This in itself can be a massive win as in the process you find out how much 'fluff' there is in your thinking.
Yet, this is not the main advantage I am speaking of.
Read on to find out what is!Read More