What are the key factors to consider when back testing a cryptocurrency trading strategy?

1 answers

• Jan 15, 2022 · 3 years ago
  When it comes to back testing a cryptocurrency trading strategy, there are a few key factors that you should consider. First, you need to have a clear understanding of the strategy itself. This includes knowing the specific indicators or signals you'll be using, as well as the timeframes and entry/exit criteria. Second, you'll need reliable historical data to test your strategy against. Make sure the data is accurate and from a trustworthy source. Third, choose a time period for testing that accurately represents the market conditions you'll be trading in. And finally, keep in mind that back testing is not a guarantee of future performance. It's just one tool in your trading arsenal, so use it to refine and improve your strategy, but don't rely on it completely.
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