Financial Glossary
Backtest
Testing a strategy on past data to see if it would have worked. No guarantee of future results.
Explanation
Historical simulation with real price data. LearnAImarkets avoids lookahead with point-in-time macro data.
Technical detail
Walk-forward out-of-sample backtest with costs included. Key metrics: Sharpe, CAGR, and Max Drawdown.
See also
Educational content. Not investment advice. Past results do not guarantee future returns.