
Limitations of Backtesting and How to Use It Wisely
Backtesting is an essential part of algorithmic trading, but it is not a crystal ball. Even the most perfect backtest…

How to Build a Reliable Backtesting Workflow (Step-by-Step Guide)
A profitable strategy is not created overnight. Backtesting is a process that requires structure and discipline. Many traders jump straight…

Understanding Key Backtesting Metrics (Sharpe, Drawdown, Profit Factor)
Running a backtest gives you numbers – but what do they really mean? To evaluate a trading strategy, traders use…

How to Collect Quality Historical Data for Backtesting
Every backtest is only as good as the data behind it. Poor-quality historical data leads to false results, overconfidence, and…

Backtesting vs. Forward Testing – What’s the Difference?
Successful traders know: one test is not enough. To validate a trading system, you need both backtesting and forward testing.…

Why Forward Testing Matters After Backtesting
Backtesting shows how a strategy would have worked in the past, but markets are never identical. Forward testing is the…

Common Mistakes in Backtesting and How to Avoid Them
Backtesting is a powerful tool, but many traders misuse it and end up with unreliable results. This article explains the…

Key Metrics in Backtesting Explained
Numbers are the heart of backtesting. A strategy is only as good as its statistics. By analyzing key performance metrics,…

How Backtesting Works: Step by Step
Backtesting is more than just checking a strategy against past data — it is a structured process that helps traders…