otae.com

How can I use historical data to inform my trading strategy

Sure! Here are three different ways you can use historical data to shape your trading strategy:

**Trend Analysis**: You can look at past price movements to identify trends. For example, if you notice that a stock tends to rise during a certain season or after specific news events, you can use that info to make more informed trades. Just keep in mind that past performance doesn’t guarantee future results!

**Backtesting**: This is where you take your trading strategy and test it against historical data to see how it would have performed. By running simulations, you can tweak your strategy to improve its effectiveness before putting real money on the line. It’s like practicing before the big game!