In trading, many strategies look great… until they face real market conditions.
That’s why backtesting is essential.
A proper backtest allows you to:
Measure not only ROI, but also risk (especially max drawdown).
Understand how a strategy performs in different market regimes.
Avoid overconfidence from “lucky trades”.
As a data scientist, I build Python trading bots with a simple philosophy:
👉 Returns are important, but risk management defines survival.
I use machine learning to optimize parameters, test setups, and evaluate the trade-off between higher returns and controlled drawdowns. My focus is not on predicting the future perfectly, but on creating strategies that remain robust when conditions change.
This account will share my journey in algorithmic trading: lessons learned, insights on risk management, and how data-driven approaches can give traders an edge.
Do you backtest your strategies, or do you rely more on intuition when trading?
— DrLegend —
#Backtesting #AlgorithmicTrading #machinelearning #Aİ #PythonTrading
