Budget 2023Budget 2023


  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
you are here: HomeNewsOpinion

How to build an effective algo trading strategy

Back-testing is an effective way for traders to try new strategies, by using historical data to understand how it would have performed in real conditions

December 20, 2022 / 06:24 PM IST
How to build an effective algo trading strategy

Representative image

Back-testing uses historical data to simulate a trading strategy. How does it help? If you want to try a new trading idea, wouldn't you like to know how it performed during the COVID Crash in 2020? Or during the corporate tax cut announced by India’s finance minister (see candle circled on the chart below)? History doesn't repeat itself, but it certainly rhymes! Before putting actual money behind a trading strategy, it is useful to understand the strategy's historical risk and...

To read the full story, Subscribe to Moneycontrol PRO

Access the exclusive stories, weekly investment ideas and daily technical calls in an Ad free experience

Already a member? Sign in

Limited Period offer on Moneycontrol PRO. Subscribe to PRO and get up to

50% OFF

What Do You Get

  • Ad free experience

    Experience a non-intrusive navigation and faster response in the ad free mode

  • Sharpest Opinions

    Access to 230+ exclusive stories per month from our editorial and Experts

  • +

    Have a Global edge with access to content from world renowned experts and journalist

  • Actionable Insights

    Access to 40+ weekly investment ideas including 4 daily technical calls

  • Virtual Events

    Exclusive access to live webinars from market experts on trading and investment strategies

  • Newsletters

    Daily and weekly insights bundled and sent to your inbox to keep you ahead in the race.

Get upto 50% discount on limited period offers