Backtesting And Edgetesting by Damir Wallener
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:3 (22-26): Backtesting And Edgetesting by Damir Wallener
Anybody with a computer and an Internet connection
can evaluate trading strategies. But how do you judge
the validity and significance of the results? Here's a
look at some of the pitfalls awaiting the unwary.
The age of program trading for the masses has arrived. Backtesting -- the evaluation of strategies against reams of historical data -- is easy to do, but useful, trustworthy advice on the validity and significance of
backtesting results remains in relatively short supply.
In this article I will walk you t...