Does Length Matter? (In backtesting)

StatsEdgeTrading

At StatsEdgeTrading, all of our backtests go back at least 25 years. This ensures our confidence in trading our systems through drawdowns. In this current market crash, it was essential to remind ourselves that our systems have seen this before to continue trading. Thankfully, we did just that, returning to new equity highs.

But what if you run a backtest and it’s killing it over the most recent market action, but underperforms before that? Did you discover something new, or is it just a fluke?

In this podcast, we look closely at this very issue with a listener who called in.

Tune in and make sure you follow so as not to miss an episode.