How to do Backtesting

Hi ,



Does Backtesting mean splitting the data set into Training and Test set and then test different models like Liner Regression , Random Forest etc .



If so then how to predict future values apart from Dataset i have .



Thank you !!!

With Warm Regards

Nandagopal

Hi Nandagopal,



Backtesting is a general concept. Also splitting the data into train and test datasets is required at times. Especially when you want to train and optimise the model and then test it on unseen data. 



Do check out the blog on backtesting as it will give you a complete idea about this concept.

Here's a link to the same: 

https://blog.quantinsti.com/backtesting/



I hope this helped.