Why Backtest Profit Does Not Mean Live Profit
Backtests are useful research tools, but they can become dangerously persuasive when costs, slippage, data leakage, and overfitting are ignored.
Topic
Backtest construction, walk-forward evaluation, realistic costs, and data integrity checks.
Backtests are useful research tools, but they can become dangerously persuasive when costs, slippage, data leakage, and overfitting are ignored.
Walk-forward validation tests a strategy through repeated train-test windows and helps reduce the false confidence of a single backtest split.