The Significance of Backtesting Your Forex Strategies

To attenuate risk and increase the likelihood of success, it is essential for traders to make use of a process called backtesting. Backtesting refers to the technique of testing a trading strategy utilizing historical data to see how it would have performed in the past. While this process doesn't guarantee future results, it is an invaluable tool in the development and refinement of Forex trading strategies.1. Understanding BacktestingBacktesting is a key step within the strategy development process for any Forex trader. It entails running a strategy through historical market data to determine its viability. In essence, you’re testing your strategy…