Stocks and Shares · Building an equity strategy · lesson 6 of 9 · 7 min read · David Alexander
The bill in the test, equity edition
the equity bill
The costs a tested equity rule actually pays, charged inside the test: the spread by tier and hour, commissions and taxes by venue, borrow and dividends for shorts, financing past the crossover for CFD rules. A backtest that skipped these costs tested a different rule - the platform's standing claim - and equities adds the sharpest corollary: the same rule can be a keeper in one tier and a leak in another, so the bill is charged per universe.
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.