Introduction: The Psychological Landscape of Backtesting In algorithmic trading, backtesting stands as a cornerstone process, enabling traders and strategists to evaluate the potential success of their trading strategies based on historical data. Despite its critical role, the backtesting process is… more »Psychological Biases in Backtesting: Seeing What You Want to See
In financial markets, the line between trading and gambling is thin and often blurred. Many traders, novices, and veterans alike fall into the trap of operating without a well-defined and backtested strategy, leading to significant financial losses, emotional turmoil, and… more »From Gambling to Gaining: The Crucial Role of Backtested Strategies in Trading
Investment strategies deeply entwined with human emotions often lead to less than optimal financial outcomes. Algorithmic trading, or automated trading, has been identified as a method to mitigate such emotional biases, but misconceptions about this technology remain widespread. This article… more »Algorithmic Trading: Facts vs Misconceptions in Emotional Investing
Entering the world of trading, it’s not just charts, numbers, and market trends that matter. There’s another crucial aspect often overlooked by novices: trading psychology. Emotions like fear, greed, and anxiety can sometimes hijack our rational thinking, leading to poor… more »Overcoming Emotional Biases in Trading