Breaking it Down: Backtesting

'Breaking It Down,' where we embark on a journey into the world of futures, commodities, bonds, equities and more! In this edition, we shift our spotlight to the intricacies of backtesting.

In the world of financial trading, understanding backtesting and optimizing a strategy is crucial. Examining charts, signals, and returns are key. Success lies in grasping the edge source—small consistent wins or infrequent significant gains. Quantify adjustments, mind sample size, avoid overfitting. The aim? A sustainable, stress-free strategy akin to …