Backtesting

Backtesting means running a strategy over historical data to see how it would have performed. It is useful for discarding ideas that never worked, but a good past result guarantees nothing: the main risk is fitting the strategy so tightly to history that it stops working outside it. Backtest results are simulated, never actual returns.

See the full glossary · What the Celsmar financial terminal is

Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.