Humanly impossible but botly possible

What does it mean? We trade on your behalf. So, you don't need to follow the market. We perform your trades for you.

So, you may think, how do we do that? Yes, we do that.

We apply our own strategy in the current market. Through the application built by our development team under its own BA requirements.

Yeah, I can read your mind now. You may think of that. How do we know whether a specific strategy will work in the live market? How do we select the correct strategy?

Good questions! To ensure it works, we use a method called back testing.

Back testing? What is it?

Back testing in trading is actually applying a strategy to historical market data to check its likely effectiveness by mimicking the performance of the strategy. With the historical trends and patterns, we can actually know the strength and weakness of our strategy. It will also be strong and robust. This process will assist us in understanding the behaviour of the strategy in various types of market situations, like bull markets, bear markets, and high volatility. Back-testing will also assist us in fine-tuning the plan by making necessary optimizations and adjustments based on the past. Fintech has achieved strong performance in the last 2 years by applying 5 years of historical data, and we have performed well in algorithmic trading.

Key Benefits of Algo Back testing

1. Validation of Strategy—Back testing verifies trading strategies by providing experimental results of performance under historical market conditions. This validation will inform us whether the strategy is likely profitable under actual trading conditions.

2. Risk Measurement—Back testing will be useful in monitoring risk factors such as drawdowns, volatility, and maximum loss. Knowing these risks will assist business analysts in making the risk management effective and protecting their capital during live trading. Maximum loss is the likely biggest loss in a given time period based on historical performance. Knowing this will assist them in placing reasonable stop-loss orders and choosing appropriate portfolio sizes to protect their capital.

One of the greatest advantages of back testing is that it allows us to test our strategies without risking actual capital. The cost-effectiveness approach will enable us to back test different approaches and monitor market patterns without risking funds. Back testing is therefore of most benefit to trading approaches, confirming and adjusting parameters with enhanced risk control. Such use will increase the potential of creating a profitable outcome along with gaining trust in algo trading approaches.