WickCheck / Trading school / Backtest
BacktestBeginner
Running a strategy's exact rules over historical data to see how it would have performed.
What it means
A backtest answers one question: did these rules, applied mechanically, have an edge on this data? It cannot test judgement, patience or how you feel during a losing streak.
How to spot it
- Clear rules, real data, costs included, enough trades.
Common mistakes
- Changing the rules after every bad trade until the history looks perfect.
Related terms
Forward testTrading the strategy on new data, in real time, usually on demo or small size, a…OverfittingTuning a strategy so closely to past data that it captures noise instead of a re…Sample sizeHow many trades a result is based on. Small samples can look great or terrible b…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.