Backtesting

Purpose

Test a strategy honestly. The default outcome of a backtest is a beautiful equity curve that describes the past and predicts nothing — and every bias in the process pushes in that direction.

When to Use

• Testing a strategy before risking capital.
• Validating that an apparent edge is real.
• Diagnosing why a live strategy underperforms its backtest.
• Reviewing someone else's backtest.

Capabilities