A Step-by-Step Framework for Stress-Testing Trading Strategies
In quantitative trading, it’s important to be careful when testing your strategy on all available data, as this can sometimes cause the rules to become too tuned and not perform well in real trading situations. To get a better idea of how your strategy really works, try dividing your historical data into a training (or optimisation) period and a test period. This approach allows you to evaluate your strategy on unseen data, much like real market conditions, which […]