Backtesting is a process for any investor aiming to evaluate the effectiveness of a strategy using historical data before risking real capital. By simulating trades over past market conditions, backtesting can allow estimation of  potential returns and fine-tune their strategy for optimal performance. While I’ve included a video at the end of this post, I’ll also break down the steps and explain them for anyone who prefers reading and wants to understand the process through r

I want to dedicate this very first blog post to Jim Simons—the man who sparked the quantitative revolution in finance. He’s the person who kickstarted the quantitative revolution in the stock market. Today, there are around 50 to 100 major quantitative investors in top hedge funds, but it all began with him. What’s interesting is that Simons didn’t study finance in college or grad school. He has a PhD in mathematics and made his name working in advanced fields like differenti