Backtester

It is a way of analyzing the potential performance of a trading strategy, where the latter is applied to real-life historical data sets. It is a statistical procedure used to validate the quality and accuracy of a VaR model, by comparing the actual results of trading positions and the risk measures generated by the models, examining how the strategy would have performed under different market conditions, including trending and range-bound markets.

Advantages of backtesting

  • Advantages of backtesting
  •  Identify strengths and weaknesses 
  •  Managing risk 
  • Making informed decisions 
  • Test strategies without risking capital
  • Crear un historial estadístico
  • Promoting operator confidence

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