Hi everyone, How do you guys test a stock trading strategy after coming up with a potential one? Cheers, Bernardo Andre
Just trade it to see if it works. If you know how to backtest it it is a good idea but the results won't tell you much. If the backtest is good the strategy may be perform bad in the future and is the backtesting is bad the strategy may work well in the future. But it is always a good idea to backtest while keeping in mind these limitations.