Backtest & Validation

Why Beautiful Backtests Can Be Dangerous

Short readBacktest & Validation

Question

Why can beautiful backtests be dangerous?

Answer

Because they can create confidence without understanding. A trader may trust the results without understanding the risks behind them.

Key Takeaway

Understanding is more important than impressive numbers.

Related Notes

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