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Why Is Portfolio Backtesting Important?

Written by Jasmeet Sodhi | Feb 17, 2023 8:33:21 PM

Portfolio backtesting is important as it can provide insights into the performance of a portfolio before committing funds to the strategy. It helps investors assess potential risks, identify correlations between strategies and validate their assumptions.

Backtesting allows for different scenarios to be tested, helping investors gauge how their chosen strategy may perform in market environments.