What is a Backtest and how do I create one?

traders create algorithms on the basis of an underlying hypothesis a backtest is meant to validate it backtesting allows a trader to simulate a strategy using historic data to generate results, analyzing risk and profitability before committing real funds a well conducted backtest that yields positive results assures traders that the strategy is fundamentally sound and is likely to yield profits when implemented in reality a well conducted backtest that yields suboptimal results will prompt traders to alter or reject the strategy there are many different metrics that can be used to measure the results of a backtest, the most commonly used are pnl annualized returns vs a benchmark sharpe ratio at tuned, we provide one of the best backtesting platforms for your strategies, a product that significantly reduces the time you spend on optimizing and validating your ideas under the 'batch testing' section press the '+' button to open the menu, then select 'simulation' the composer section will pop up and allow you to select your strategy and associated settings you can read more about backtesting here https //www investopedia com/terms/b/backtesting asp