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Backtesting

Backtesting is a concept in algo-trading that lets a trader simulate a trading strategy or model using historical data in order to create outcomes and gauge risk and profitability before putting actual money at risk. A successful backtest will convince traders that the strategy is fundamentally good and will likely deliver profits when implemented in reality.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

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