How to Optimize a Trading Strategy Using Backtesting
Trading without a solid plan is like trying to navigate a road trip without GPS. Sure, you might get lucky, but chances are you’ll end up lost (and broke). That’s where backtesting comes in. It’s like a time machine for your trading strategy, letting you see how it would have performed in the past before you put your hard-earned cash on the line. When done right, backtesting helps you fine-tune your approach, avoid costly mistakes, and trade with confidence. In this guide, we’ll break down how to optimize your trading strategy using backtesting—no boring jargon, just real talk.