What is Backtest?
A backtest is a test that runs a set of trading rules over past price data to see how those rules would have behaved. You define entries, exits, and risk, then replay them bar by bar across history and collect the results. A backtest describes the past only; it is not a forecast of the future.
Why Backtest matters
It is the cheapest way to find out whether an idea has any structure before risking real money on it.
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