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What is Backtesting - Definition | Forex Dictionary

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Full Trader
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Backtesting is the process of testing a strategy on historical data to see how it would have performed in the past. In MetaTrader it is done with the Strategy Tester, which simulates trades over the price history.

Why it matters: a backtest gives you a first idea of whether a strategy makes sense, but it does not guarantee future results. Data quality and avoiding overfitting are fundamental.



   
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