Backtesting

Testing a strategy on historical charts to measure its edge before risking money.

Related terms

Base CurrencyThe first currency in a pair — EURUSD = how many USD one EUR buys.
Bear MarketA prolonged falling market (commonly −20% from highs). Sellers in control.
BiasYour directional opinion for the session, decided top-down from the higher timeframe BEFORE trading.
BidThe highest price buyers currently offer. You SELL at the bid.
BondA tradeable loan to a government or company paying interest — the world's biggest "safe" market.
Bond YieldThe effective interest a bond pays. Rising yields pull money out of risk assets.

Terms stick when you use them. The Money Circle academy walks you through them step by step.