The Trading Coach Podcast 1238 - AI in Trading: Will It Kill Manual Backtesting?
Nov 9, 2025
Can AI truly replace manual backtesting? The discussion dives into three core goals that traders aim for: training the eye, data analysis, and psychological resilience. Manual backtesting sharpens pattern recognition through countless reps, while also providing crucial data for informed decision-making. Reliving past trades enhances emotional readiness for live trading. The conversation also highlights how AI can assist in specific scenarios, but it's clear that psychological preparation remains key before handing over testing to automation.
AI Snips
Chapters
Transcript
Episode notes
Three Core Goals Of Backtesting
- Akil identifies three core goals of backtesting: training your eye, collecting data, and practicing psychology.
- He says AI can only fully address one of these depending on your trading style.
Eye Training Is Nontransferable To AI
- Training your eye builds pattern recognition and reticular activating system (RAS) skills crucial for discretionary traders.
- Akil argues AI cannot replicate this visual training for discretionary decision-making.
Data Crunching Is AI's Strength
- Backtesting gives you abundant data to judge profitability, risk, and pair performance.
- Akil notes automated methods and AI excel at generating and crunching that volume of historical metrics.