Research Backtest

Research Backtesting is the initial phase of backtesting a strategy, where in all aspects of market interaction are not fully simulated, but approximations are made to determine the potential strategy’s performance. Research backtesting is basically used to test the core strategy ideas before going in for a rigorous backtesting in a more realistic environment. These backtesting systems are often written in Excel, Python, R or MatLab as the speed of development is more important than the speed of execution during the initial phase of strategy creation while you are testing out crude but multiple strategy ideas.