Backtesting

Backtesting is a methodological process used to evaluate the performance of a trading strategy or model by applying it to historical data, allowing developers to assess its potential effectiveness and identify areas for improvement. In the tech community, backtesting is particularly relevant for programmers working on algorithmic trading platforms, risk management systems, and financial modeling applications, as it enables them to validate their code, optimize trading strategies, and minimize potential losses by simulating real-world market conditions.