Question
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What is SHI back testing?
1 Answer
<p id="isPasted">Purpose of backtest is to validate the viability of a strategy. You make use of historical data and execute few hundred trades to achieve statistical significance. Backtest is used to test out an idea, or to find the optimal stoploss level. You want to take every trade as mechanical as possible and every trade should be based on the same set of criteria. If you take 2 trades very differently, you backtest is no longer valid because you have strayed from your intended strategy.</p>