- Joined
- 26 September 2010
- Posts
- 12
- Reactions
- 0
I've notice that people say that backtesting a system does not give very reliable output and it is better to paper trade a system for a while. Why is this?
I've notice that people say that backtesting a system does not give very reliable output and it is better to paper trade a system for a while. Why is this?
I don't remember any particular instances where I read it, but if I read it again I'll take note.Are you able to quote the references, via a url, where people disagree with this type of method ?
Are you saying that if the backtest is over a period with a similar market environment then the system will obtain those results when traded?Systems will trade within their blueprint provided the system is trading in a period which is not far enough outside of the data set which the testing was conducted to create a trading environment foreign to it.
I've notice that people say that backtesting a system does not give very reliable output and it is better to paper trade a system for a while. Why is this?
Are you saying that if the backtest is over a period with a similar market environment then the system will obtain those results when traded?
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.