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Why Backtesting Needs Honest Rules

Sachin Yadav

Backtesting becomes misleading when I change the rules after seeing the outcome.

If I only count the examples that support my idea, the strategy may look much stronger than it really is.

I need clear entry and exit criteria, enough observations, and realistic assumptions about costs and execution. The goal is to test an idea fairly, not to prove that I'm right.

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