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Crypto Trading 101

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Backtesting means applying your strategy to historical data to see how it would have performed. It helps refine your setup and validate profitability before using real funds.

Steps:

  • Choose a platform (TradingView, CoinMarketCap, or coded in Python)
  • Define exact entry and exit rules
  • Analyze results: win rate, average loss/gain, drawdown
  • Adjust parameters and re-test

Avoid overfitting (making a strategy too perfect for past data but useless in live trading). Keep strategies simple and statistically sound.