How to Backtest a Trading Strategy

Do you think you have great ideas about the market but don’t know how to put them to the test without risking your funds? Learning how to backtest trade ideas is the bread and butter of a good systematic trader. The underlying premise of backtesting is that what worked in the past may work in the future. But how do you go about doing this yourself? And how should you evaluate the results? Let’s go through a simple backtesting process.