Not All Backtests Yield Accurate Results

Not All Backtests Yield Accurate Results

In order for a trading strategy to be potentially investable, one should first backtest the strategy for at least a couple of years, over at least 500 trades, to see how that strategy would’ve fared in the past. Well, not all bar types are created equal, and thus not all backtests will yield accurate results. Watch this quick video on how various bar types, including Renko bars, Heikin Ashi bars, and minute bars, impact backtests; and which bar is the only bar type that one may deem accurate in NT8 when backtesting a strategy.

Enjoy the video, and happy trading!

PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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Raffi Sosikian, principal at Pinnacle Quant LLC, being interviewed by Matthias Knab of Opalesque TV while at the SALT conference in Las Vegas. 

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Raffi Sosikian, MBAPrincipal of Pinnacle Quant, LLC, CTA