What does Backtesting mean?

Backtesting meaning in Finance Dictionary

Uses a big historic price database to guage a trading system's profitability.

Backtesting meaning in Law Dictionary

The process of deciding the legitimacy of a VALUE ATRISK model by researching actual profit and loss experience with results predicted by the design. The procedure is in addition relevant in financial investment administration, where an ongoing securities choice methodology is put on prior times to generate a hypothetical overall performance history. See additionally PROFIT AND LOSS EXPLAIN.

Backtesting - German to English