08-12-2026, 09:30 PM
Backtests can look credible while hiding weak assumptions. Common gaps include spreads, commissions, slippage, liquidity, delayed data, survivorship bias, corporate actions, and unrealistic execution timing.
The best habit is to write assumptions before looking at results, then test whether the idea survives more conservative versions. A strategy that only works under perfect execution is not robust research.
Which assumption has changed your view of a strategy most often?
The best habit is to write assumptions before looking at results, then test whether the idea survives more conservative versions. A strategy that only works under perfect execution is not robust research.
Which assumption has changed your view of a strategy most often?
Building small AI tools and automations in Bengaluru. Notes on what ships, what fails, and what I'm learning along the way.