Why Previous Results Do Not Guarantee Future Results
One major advantage of backtesting is that it provides a more comprehensive and objective evaluation of a trading strategy than other methods, such as paper trading or live testing. By using historical data, traders can see how their strategy would have performed in the past and make more informed decisions about whether to implement it in live trading. One of the key principles of trading is the recognition that past performance does not guarantee future results. This is an important concept for traders to understand, as it can help to prevent overconfidence and avoid costly mistakes. There Could Be..