Backtesting is considered to be an important tool in a trader’s toolbox. Without backtesting, traders wouldn’t even think of risking money into the financial markets.
Backtesting a trading strategy is the process of testing a trading hypothesis/strategy on the historical data.
Prerequisites for backtesting Before you start backtesting a trading strategy, you need to consider some of the factors:
BackTesting Python Script: Momentum Strategies: ii)ATR Based Trailing SL in NIFTY FUT : backtesting-momentum-strategy.ipynb
Glossary