Backtesting Biases and Validation Methodologies in Stock Trading Automation
Stock trading automation is now widely used by traders who want to test trading ideas, reduce emotional decisions, and trade more consistently. Before using an automated strategy in real markets, traders usually test it on past market data. This testing process is called backtesting. Backtesting is very useful, but it must be done carefully. If errors are made, the results can look much better...
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