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Mastering Backtesting in Algorithmic Trading
This chapter explores the crucial role of the Norgate Zipline plugin for accurate backtesting in trading strategies, emphasizing the avoidance of biases such as survivorship and look-ahead bias. It discusses the complexities of handling adjusted price data, strategy development, and the need for a robust backtesting framework to ensure reliable trading simulations. Additionally, the chapter highlights the importance of out-of-sample testing and sound risk management to mitigate biased results and improve algorithmic trading outcomes.