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What is backtesting and why is it essential to formulate successful trading strategies?

Backtesting is a crucial method used in strategies to trade and invest in mutual funds and stocks. It involves simulating a trading strategy using historical market data to evaluate its potential effectiveness and profitability. This process allows traders and fund managers to assess how well a strategy would have performed in the past, thereby providing […]

What is backtesting and why is it essential to formulate successful trading strategies?
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