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Backtesting of trading strategy

Testing a trading strategy (backtesting) is the process of evaluating the profitability and risks of a trading strategy, as close as possible to real conditions. While testing the strategy, we are trying to simulate buy and sell transactions based on the information available at each moment in time. Strategy testing is a necessary element of automated trading in the stock market. In the video, Petr Parshakov considers testing simple trading strategies in the R statistical package using the shares of Russian companies*.

* the video is in Russian






 

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