Back Testing

BACK TESTING

Back testing is a way of testing the signals given by a trading system in order to see whether it would have been profitable in the past.

Now, just because a system worked in the past does not mean it will be profitable in the future also. This is a fair statement.

But, at least there is a fair chance that if it worked in the past it may well work in the future also.

Now, compare a back tested system to 'trading tips' for which no past record is available. We do not know if such tips have a profitable record. With back tested trading systems, there is a record of past success. So, which is a better candidate for trading ?

Trade-V signals have been extensively tested over almost three years of hourly data. Sample Performance reports are provided in the Performance section.