Lab Notes

Trading PhilosophyWhy Most Traders Stay StuckIs Trading Investing Or Gambling?Why I Share EAs For FreeCan Trading Be Part Of A Normal Life?
EA & SystemsWhat Is An EA Ecosystem?Why One EA Is Not A Business?Why I Stopped Looking For The Perfect EA
Experience & LessonsWhat I Learned From Thousands Of Backtests
Backtest & ValidationAre We Using Backtests Incorrectly?If Backtests Cannot Predict The Future, Why Do We Use Them?What Is A Good EA?Can A Backtest Prove Future Profit?Why Do Backtest Results Change?Does A High Win Rate Mean A Better EA?Who Decides The Outcome?What Question Should We Ask A Backtest?Why Beautiful Backtests Can Be DangerousBacktest As A System Understanding Tool
Risk ManagementWhy Survival Matters More Than Profit?Why I No Longer Chase High Returns
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Backtest & Validation

Backtest As A System Understanding Tool

Short readBacktest & Validation

Question

What is the real purpose of a backtest?

Answer

The real purpose of a backtest is to help us understand a system, not to guarantee future profit.

Key Takeaway

Backtest is a learning tool, not a prediction tool.

Related Notes

Are We Using Backtests Incorrectly?If Backtests Cannot Predict The Future, Why Do We Use Them?What Is A Good EA?

Related Notes

Are We Using Backtests Incorrectly?If Backtests Cannot Predict The Future, Why Do We Use Them?What Is A Good EA?

Popular Notes

Why Survival Matters More Than Profit?What I Learned From Thousands Of BacktestsAre We Using Backtests Incorrectly?
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