"To backtest the strategy" means to test a particular plan or approach by applying it to historical data to see how it would have performed in the past. Full definition
Learn how to backtest your strategy using powerful technical tools on the Trading Station platform. (landing.fxcm.com)
From backtesting your strategies to a full - fledged dashboard with an overview of all your positions on the different exchanges. (haasonline.com)
If you compare the performance, for example, of the Magic Formula backtested strategy (roughly 50 % cumulative since eary 2006) and the «real» performance of the Magic Formula as documented recently on the MFI Diary Blog (cumulative + 6 %), you start to wonder which motives lead to these outstanding «backtested» numbers.... (greenbackd.com)