82,446
edits
Backtesting: Difference between revisions
Jump to navigation
Jump to search
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 4: | Line 4: | ||
{{quote|'''''Backtesting''' is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk.''}} | {{quote|'''''Backtesting''' is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk.''}} | ||
This makes it sound sensible, measured, prudent and not the | This makes it sound sensible, measured, prudent and not the systematically moronic idea it is. Backtesting is one of those [[cognitive dissonance]]s that has passed, for now, into embarrassed history, but is sure to re-emerge the moment the markets regain their giddily optimistic resting state. Markets are fueled by the self-confident delusions of vain men. | ||
Once upon a time a resourceful [[salesperson]] with a clever new product (one that, you know, embedded [[leveraged alpha]], or something) had to go through the motions of justifying its “extraordinary potential”<ref>i.e., for [[sales credits]]</ref> when pitching it to {{sex|his}} [[mark]]s<ref>Did I say “[[mark]]s”? I meant “sophisticated [[client]]s properly categorised for [[MiFID]] purposes as [[Professional client - COBS Provision|professionals]] who weren’t carpet-bagging blaggers, had the slightest clue what they were about, effortlessly saw [[charlatan]]s coming a mile off and weren’t remotely influenced by the [[corporate entertainment]] — golf, motor racing, fine dining and [[hookers]] — with which they were lavishly festooned”.</ref>. | Once upon a time a resourceful [[salesperson]] with a clever new product (one that, you know, embedded [[leveraged alpha]], or something) had to go through the motions of justifying its “extraordinary potential”<ref>i.e., for [[sales credits]]</ref> when pitching it to {{sex|his}} [[mark]]s<ref>Did I say “[[mark]]s”? I meant “sophisticated [[client]]s properly categorised for [[MiFID]] purposes as [[Professional client - COBS Provision|professionals]] who weren’t carpet-bagging blaggers, had the slightest clue what they were about, effortlessly saw [[charlatan]]s coming a mile off and weren’t remotely influenced by the [[corporate entertainment]] — golf, motor racing, fine dining and [[hookers]] — with which they were lavishly festooned”.</ref>. | ||