AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
How to Design Tests That Match Real-Life Trading
For a longer-term study, metrics like Kager and kind of these drawdowns are not going to be as meaningful. You have to understand how to design tests a certain way to get the kind of results that match real-life trading. Back test is supposed to give you a lot of context. But if you can't trust the context, or if you don't even understand why it produces a certain output, it's going to be hard to get conviction.