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Do Not Fall Into These Financial Back-Testing Traps
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Do Not Fall Into These Financial Back-Testing Traps

Do not be Misled by these Errors When Back-testing your Trading Strategy

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jun 17, 2025
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Do Not Fall Into These Financial Back-Testing Traps
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Back-testing is your proof of work for any strategy you might think of. If the trader’s friend is the trend, then back-testing is his best friend. Many traders out there just “accept” the mainstream strategies that are already out there and use them in hopes of becoming rich.

The correct framework is to get ideas from here and there, build-up on them, co…

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