Mastering Backtesting: Beyond the Illusion of Past PerformanceFor many aspiring traders, backtesting a strategy against historical data is t

Mastering Backtesting: Beyond the Illusion of Past PerformanceFor many aspiring traders, backtesting a strategy against historical data is the first exciting step toward finding a market edge. It allows you to simulate how your rules would have performed, offering a glimpse into potential profitability. However, relying solely on backtesting without proper discipline can be a treacherous path, often leading to false confidence and significant losses once you enter live markets. The key is to understand its limitations and pair it with more robust validation methods.The Hidden Traps of Backtesting AloneBacktesting involves applying a set of trading rules to past market...