Backtesting vs Trading System

Quick comparison to help you distinguish these two crypto terms.

Backtesting
intermediate
strategy

The process of applying a trading system's complete rule set to historical price data to evaluate how those rules would have performed before committing real capital to live market execution.

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Trading System
intermediate
strategy

A structured, rule-based framework that defines exactly when to enter trades, how to manage risk, and when to exit, removing emotional decision-making from every execution.

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