Just came across this discussion, and it’s really interesting. I’ve always wondered how much traders actually rely on backtesting. It seems like a good tool for getting an idea of whether a strategy works, but I guess it’s not a perfect predictor of live results.
I’ve heard some people use Monte Carlo simulations to test the robustness of their strategies. Do you guys ever do that, or is it more of an advanced thing? Also, does backtesting work the same way for stocks and forex, or are there major differences?