Is Your Backtest Too Good to be True? Here's How To Tell
In this week's episode of Line Your Own Pockets, we tackle one of the most important issues for systematic traders: is your backtest too good to be true?
The best time to discover your backtest is unrealistic is as early as possible, even if it ruins your day (I've been there SO many times!).
We discuss:
- Make your default stance skepticism rather than excitement
- Understanding future leak - probably the most common way backtests fall apart in live
- Beware entry/stop/exits happening in the same bar (and how you can deal with this)
- How to identify unrealistic outlying trades quickly
- Your reconciliation process with your backtest is your ultimate backstop for ANY issue
And much more...
Whether you're a seasoned veteran or a systematic trading newbie, you'll want to listen.
SHOW NOTES:
Sir Isaac Newton's terrible trading record
SHOW NOTES:
Sir Isaac Newton's terrible trading record
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Before you go!
The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.
I hope to see you there!
Before you go!
The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.
I hope to see you there!
Creators and Guests
