Engineering Alpha

Engineering Alpha

Using the t-Statistic to Validate Your Trading Results

A Golden Performance Evaluation Metric to Understand

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jan 14, 2026
∙ Paid

If you’ve been trading for a while, you’ve probably had this thought:

“These returns look good. But are they real?”

Not real as in “did the broker miscalculate,” but real as in statistically meaningful. Real as in unlikely to be luck. Real as in something you could expect to persist, at least a little, going forward.

That question is harder than it sounds.…

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