Back testing on historical data seems to be vey interesting and useful. It helps traders to find out whether the strategy would be profitable or not, detect the weak point of their strategy and fix them. At the same time, it is quite difficult to find reliable information about back testing. Most of the traders just use demo trading instead of backtesting, but it seems to be so time-consuming, and the results of such testing are heavily influenced by trader`s psychology.
Let`s collect everything related to back testing here: pros and cons, tools, personal experience and ideas.