What are the key differences between backtesting and forward testing in the context of cryptocurrency trading?

1 answers

• Akshdeep SinghNov 11, 2020 · 5 years ago
  In the context of cryptocurrency trading, backtesting and forward testing can be crucial for traders to assess the effectiveness of their strategies. Backtesting allows traders to analyze historical data and simulate trades to evaluate the profitability and risk of a strategy. It helps traders identify patterns and trends that can be used to make informed trading decisions. Forward testing, on the other hand, provides traders with real-time market data to test their strategies in a simulated trading environment. It allows traders to assess the strategy's performance under current market conditions and make necessary adjustments. Both backtesting and forward testing are valuable tools for traders to optimize their strategies and improve their chances of success in cryptocurrency trading.
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