Backtesting: Difference between revisions

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{{a|glossary|}}Here's what [http://www.investopedia.com investopedia] has to say about backtesting:
{{a|glossary|}}Here's what [http://www.investopedia.com investopedia] has to say about backtesting:


{{box|'''Backtesting''' is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk.}}
:'''''Backtesting''' is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk.''


Which makes it sound sensible, measured, prudent and not the systematically moronic idea it is.  
Which makes it sound sensible, measured, prudent and not the systematically moronic idea it is.