# Backtesting

*Risk & Portfolio — Finicade finance glossary*

Checking a model or strategy against history — did the losses that actually happened line up with what the model predicted? For a risk model, too many breaches means the model is understating danger.

**Related terms:** [Value at Risk (VaR)](https://finicade.com/glossary/value-at-risk), [Stress Testing](https://finicade.com/glossary/stress-testing)

**Taught in:** Risk Arena — The Model Validation Audit

Source: https://finicade.com/glossary/backtesting