Backtest Your Strategy KO

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What the numbers mean, and where they mislead you.

Why Maximum Drawdown Matters More Than Returns

Recovering from a 50% loss takes a 100% gain. What drawdown is, and why you should read it before the return figure.

3 min read

Total Return vs CAGR, and Why They Disagree

Up 50% then down 50% leaves you at −25%, not flat. The compounding illusion and how to read annualised return.

3 min read

Five Reasons a Backtest Looks Better Than Reality

Overfitting, look-ahead bias, survivorship, execution costs and regime dependence. What to verify before you trust a result.

4 min read