FX · Building an FX strategy · lesson 7 of 9 · 9 min read · David Alexander
Backtesting without fooling yourself
backtest
A backtest applies a specified rule to historical data and reports what it would have produced. It is only evidence about the rule if the rule was fixed before the test, the costs were charged, and some of the data was never used while the rule was being decided. Break any of those three and the result measures the process that produced it rather than the rule.
This lesson is part of the advanced modules.
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