Backtesting is mainly used by traders in order to test trading strategies. There are many trading
strategies that people like to use. However, before they put in any effort to execute the strategy it is
important to ensure it’s security. This helps traders to avoid loss. It also helps them to save time and
energy. Backtesting is simply done by using the data from previous trading strategies to make future
predictions about new strategies. Judging by the way certain elements from past strategies worked,
traders can predict the success or failure of a new similar strategy. They then use this information to
make decisions. If a backtest is successful, then traders go ahead with the strategy.
Python is simply the language that is used by computer programmers. Many websites and softwares
and made using python. Lots of automations and analysis is also done on various websites and
programmes with the help of python. Python is not limited to only a particular niche but many
people can use it for creating different types of websites.
Python can be used for backtesting. Backtesting can be made easier with the help of python.
Backtesting in python has helped traders to utilise new and advanced technology to speed up the
process of backtesting.
There are many different backtesting libraries and advanced Python platforms that you can use to
backtest your strategies. There are many different options available and you need to choose the best
one for optimum results. A few things to consider when choosing a Python backtesting platform are
speed, accuracy, maturity, and flexibility. You should also make sure that the platform you choose is
easy to use.
- How to use Python for backtesting:
Here are a few general steps in which people use Python for backtesting:
- Install your backtesting platform.
- Import your trading strategy
- Enter all necessary data related to your strategy.
- Optimize the data
- Run the backtest
Although the above steps seem simple, they can be quite alien to someone who is not familiar with
how coding works. Hence, it is recommended to take the assistance of a professional coder or
computer programmer and ask them to run your backtest. However, if you do know how to run
these backtests but need an easy-to-use and simple platform, then ibridgepy is the one for you.
You can click on the link and visit their website to know more about their features.