Backtesting: Harnessing the Past to Test Your Trading Strategies
Using the historical data to test your strategies and fine-tune it for optimal results.

All the stock market traders out there can benefit from Backtesting. It simply puts your investment strategy through a ‘Test’. This is a perfect thing to do from an investment perspective before you put your money against the Real-time market. Trading bot backtesting is gripping up Traders & becoming their Favourite method to go about Backtesting.

How does Backtesting Work?

Backtesting is basically about testing your investment Strategy against market behavior from the past. You can select any date range. Let’s say you picked March 2010 - July 2013. That’s it. You just click the Button & see very detailed results.

As the result, you get to see How much profit you would have made during that time. Amount of Overall profit/Loss, number of investment cycles your investment through during the selected period.

Backtesting results will put up mindblowing & enough data in front of you so that you get the best time check on the Investment market. The backtesting engine plays a vital role in this process. More details ahead.

Read More: How To Use Open Interest In Options Trading?

Backtesting Saves Time & Money

Medium to Long term investments is usually more preferred & profitable investments. Now, these investments can range from 3-4 years to even 10 years period. You can’t just sit till 10 Years pass away & See how did market behave.

Backtesting gives you that Leverage. You can literally click a button & Zing through 10 years of market. That’s worth a lot of Benefits. Because we all know the market will definitely go through bears, bulls, crashes & soarings in a duration of 5-10 years for sure.

So doing this practice will take you on a sort of Quick investment journey. The experience you otherwise wouldn’t have. But you can experience those market movements all thanks to backtesting.

Backtesting improves your Trading Strategy 4x

The backtesting engine tests your Investment strategy against real-time markets very rigorously. The end result of backtesting might shock you a bit, but it will only increase your Profit margins. Because it is pretty much impossible for the Human brain to perceive through 5-6 Years of market times.

Take in those changes & modify your trading strategy. These imply all types of trading - stocks, options, algorithmic trading, all of them. An empirical study found the Performance of investment strategy to have increased up to 4 times after making changes based on backtesting.

Get closer to your Expected ROI

Q: Now who doesn’t want to make Profitable returns on investments?
A: Absolutely No one.
Q: But how do YOU maximize your return on investments
A: Absolutely go with Trading bot backtesting.

Trading bot backtesting is the best method to do backtesting. Inside the SpeedBot app, you can create unique trading bots for each unique trading strategy. For example, You can create one trading bot for Reliance's script. Second bot of HCL’s script. So on and so forth.

After creating these individual bots, you just have to select the time period and your Portfolio details. And boom, Those trading bots will Instantly complete totally accurate backtesting for each different Trading option you want.

This way you will get Individual, Unique & Specialized backtesting results with recommendations. Eventually, after putting in those changes to your trading strategy there are 73% Higher chances of Getting Increased ROI.

The Extra Layer of Safety

The automated stock trading app is proving to be a game changer in the recent past & is bound to grow rapidly within the next couple of years. This application is super smart tech-enabled to give all traders a much better trading experience.

With Backtesting engine-generated recommendations, modified strategies & smart portfolio management Traders all over the world are seeing better return rates. Artificial intelligence technology implemented in this trading platform analyses the market in a much more efficient manner.

Here’s a Tip to full proof your trading strategies: Over and above All the techniques discussed so far, keep an extra caution. Try to occasionally Keep up with evolving market behaviors & developments. This will sharpen your decision-making going ahead in Long term investments.

Golden Tip for Backtesting & Trading

Always create a strategy first. Then backtest it and Improvise the strategy and planning. Never do the reverse. Just randomly doing some testing & then creating a strategy wholly based on that is not the right way to Go.

Build a strategy, jump to SpeedBot’s Automated stock trading app & do the rigorous Backtesting. Implement the backtesting engine suggested changes for better results. This way you get to access the Best of both worlds.

Backtesting: Harnessing the Past to Test Your Trading Strategies
Nildeep 2 November, 2022
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