Backtesting is a key component of effective trading-system development. It is accomplished by reconstructing, with historical data, trades that would have occurred in the past using rules defined by a given strategy. The result offers statistics to gauge the effectiveness of the strategy.
The underlying theory is that any strategy that worked well in the past is likely to work well in the future, and conversely, any strategy that performed poorly in the past is likely to perform poorly in the future. Depending of the technical indicators operating in the strategy, backtesting results are more or less likely to match with real results, our strategy consultants will help you in its design in order to get the most reliable backtesting results.