Performance statistics · Pro
Backtesting
What does Backtesting mean?
Backtesting applies a strategy’s rules to historical market data to estimate how they would have performed. Results depend on data quality and assumptions about execution and costs.
Example
A trader tests the same entry and exit rules over several past market conditions.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
A historical test does not reproduce every feature of live fills or prove future profitability.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.