Creating Accurate Backtests

Why Should You Care About Accurate Backtests? The value of backtests cannot be understated. But they have to be accurate backtests. Anything else will lead you astray. Will create false hope. And eventually lead you down a path of ruin. But when you have accurate backtests, you can go from zero to two, three, four…
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Will You Find Success

Along the journey of life, we often seek confirmation from others. Confirmation that we are on the right path. Confirmation that our goals are achievable. Confirmation that we will be successful and our efforts are not in vein. But the reality is, if we are seeking confirmation from others, we likely do not have the…
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So What Is Volatility

So Beyond The VIX, What Exactly Is Volatility? Volatility is one of those words everyone knows, but not everyone understands. "...Volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range…
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Proper Backtest Timeframes

The further you extend your backtest period the better. The more samples you have to evaluate performance or risk, the greater your understanding of the system you will one day risk capital with. How far back you are able to look though depends on a number of things, including your historical data and the instrument being…
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