Momentum Trading Backtesting
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We are glad to introduce Momentum Trading Backtesting.
You can perform backtesting on any kind of technical strategy—whether momentum-based or reversal setups.
The Definedge Momentum Backtesting platform offers a powerful environment with:
• Multi-timeframe strategy support
• Relative strength and momentum frameworks
• Historical constituents (no survivorship bias)
• Lightning-fast backtesting
• Complete portfolio testing with detailed insightsExplore the full potential of technical strategy testing—systematic and insightful.
We have built a simulator for Momentum Investing strategies, where periodic rebalancing works well. However, the same simulator approach doesn’t suit momentum trading strategies. This is because rebalancing is optional in trading, and the system needs to scan the portfolio daily for exit and entry conditions—making the simulation process extremely slow.
That is why we have adopted a backtesting approach for momentum trading strategies. We have significantly optimized its performance and will continue to enhance it further.
We hope you find this feature useful.
