Backtesting is applying a strategy to historical data to see “how you would have done”.
Portfolio backtesting lets you design and test strategies on multiple symbols.
Both Multicharts and Tradestation 2000i is available for backtesting.
Trading Strategy Optimization
A trading strategy is created by taking trading concepts, ideas, and observations about historical market behavior, and implementing them into a trading system. Whenever you find an optimal solution to doing anything in everyday life, you are actually performing implicit optimization. So, people often use trading system optimization when creating trading strategies as well. Optimization tests many possible input combinations to find ones that result in the best performance.
What is strategy optimization?
Strategy optimization is the search for optimum parameters for predefined criteria. By testing a range of strategy input values, optimization helps select values that correspond to optimal strategy performance based on historical data.