Stocks and Shares · Building an equity strategy · lesson 8 of 9 · 6 min read · David Alexander
Backtesting an equity rule without fooling yourself
the equity backtest checklist
The module's audits, assembled into one pass: point-in-time universe with casualties, announcement-dated fundamentals, the bill per universe, clusters counted, regimes split, and the general overfitting discipline inherited from three tracks. Equity backtests fail differently from commodity ones - not through chart construction, but through testing a kinder world than existed.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.