Backtesting in Python

If I want to know how a burger tastes like in a restaurant, I'll go there and eat it. However, let's say I want to know how a burger tasted from a particular restaurant tasted like in 2015? I can't go back in time. Or let's say I want to know how every burger joint tastes like in London today? I could attempt to visit every single burger joint and try it, but it's going to be time consuming and also might have shall we say a suboptimal impact on my cholesterol. The next best thing is do some sort of historical analysis to get access to datasets which have reviews of burger joints, over the past few years, essentially crowdsourcing the task. We could look at the specific ratings given in the reviews, and also use natural language processing on the reviews themselves to gauge sentiment.

When it comes to financial markets trying how to understand how a trading strategy may perform in the future, we could just run it live, like my burger example. However, in practice, just like our burger example we can use some sort of historical data to do a study, to backtest how our trading strategy would have performed...

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