Forward Testing allows traders to validate their strategies in real-time or simulated real-time market conditions using virtual capital. It mirrors live market movements, enabling you to test order execution, entry/exit logic, stop-loss/target behavior, and overall strategy performance without risking actual funds.
You can place trades with virtual money, monitor how the strategy performs under different market scenarios, and fine-tune parameters based on real-time outcomes. This helps in identifying practical issues such as slippage, volatility impact, and execution delays before going live.
Forward Testing acts as a crucial bridge between Back-testing and Live Trading, giving traders the confidence and clarity needed to deploy strategies safely in real markets.
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