Forward testing
Forward testing evaluates a strategy on data not used to develop or optimise it, often through demo trading as new prices arrive. Some platforms also use the term for testing on a reserved, later portion of historical data; neither approach guarantees future results.
In an illustrative scenario, a trader freezes a strategy's settings after backtesting and observes its behaviour on a demo account as new market prices arrive.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure