Backtesting Strategies Properly·Lesson 21 of 38·25 min
Build a backtest loop; avoid look-ahead bias
This lesson is for enrolled learners
The concept in plain words A backtest answers one question: "if I had traded this rule on historical data, what would have happened?" The honesty of that answer depends entirely on one discipline — at every point in the loop, the strategy is only allowed to see information that would genuinely have been available at that moment in time. Violate……
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