Course Wiki

Backtesting

Simulating a strategy on historical data — the course's discipline for trusting predictions before risking money.

Backtesting replays a strategy over historical prices: the model’s predictions drive simulated trades, fees and risk rules are applied, and the financial result is measured. Module 4 builds the simulation loop on the predictions from module 3 and the strategy design chosen for them.

The course’s conservative path is explicit: make the historical simulation resemble the future operating path — same data availability, same fees, same execution assumptions — before trusting the result. The simulated strategy then becomes the deployment module’s automation target.

Taught in

• Stock Markets Analytics Zoomcamp

  • Module 4: Trading Strategy and Simulation
    • Trading Strategy and Simulation
  • Module 5: Deployment and Automation
    • Deployment and Automation ## Related concepts

• Trading Strategy

• Risk Management

• Deployment Automation

• Time Series Decomposition

• Linear Regression