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Re: newbie's question:back testing?
Yeah, like T said- it's really means just going back and testing out the proposed method to see if it is valid.
ie setting up 3 moving averages and replaying through historical data on the charts to see if the moving average crossovers would have been good entries or not. it helps check the efficacy of the system or method.
It can get much much more complicated depending on how far you want to take it though.
Best of luck, and I hope this helped. Any questions, feel free to ask.
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