Backtesting is a technique that is used to evaluate the performance of a trading strategy using historical data. The idea is to apply the trading strategy to past data and see how it would have performed in those conditions. This can provide some insight into the potential effectiveness of the strategy.

AI in financial markets is nothing new and it has been used in the markets ever since electronic trading came into existence in the late 1990s. However, the complete shift to AI trading, where humans become obsolete and can not compete with AI, is still some decades away and might not even happen in my lifetime.

Algorithms are not just automating many processes, making them more efficient; they are now enabling people and machines to work collaboratively in novel ways.