The process of testing a trading strategy or predictive model on historical market data to evaluate its performance. Backtesting simulates how a forex robot would have traded in the past, measuring profitability and risk without real money. A proper backtest uses out-of-sample data and realistic assumptions; for example, it might withhold recent price data until after tuning parameters, to check if the strategy generalizes. It is a critical step to ensure the trading algorithm is viable before live deployment.

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