Lesson Context Market Feed
SPY $746.18 +0.47%
QQQ $719.30 +0.67%
AAPL $309.62 +1.51%
MSFT $418.28 -0.19%
NVDA $217.11 -1.09%
XLK $180.82 +1.24%
Practical Understanding

The backtest questions SFZ should help you answer fast

These checks keep the engine aligned with real operational decisions.

Checklist Primary output: Reject or advance Best habit: Test ugly periods Screen: Backtesting Engine
Key Takeaways What to take from this lesson
Metrics that matter Reasons to fail the strategy
Risk Frame Backtesting trap to avoid
  • Do not tune until the bad period disappears.
  • Do not compare systems with incompatible capital assumptions.
  • Do not treat one high-performing run as robust evidence.
Checklist

Metrics that matter

  • Expected drawdown versus capital budget.
  • Consistency across symbols or market slices.
  • Recovery speed after weak periods.
Checklist

Reasons to fail the strategy

  • Performance depends on one short historical burst.
  • Small parameter changes collapse the result.
  • The strategy only looks good when sizing is unrealistic.
Checklist

Ready for the terminal when

  • The rule set remains understandable after testing.
  • The drawdown path is uncomfortable but still acceptable.
  • You know exactly what live behavior would invalidate the thesis.