Backtesting Trading Strategies - Test on Creation of a Backtest

Quant Trading Strategies & Ideas
1

Section 4/14



Can you review this question on the test?



It's not clear because the choices 123 are not identical to the questions ABC… B and 2 are different…



Question 1 -



Which of the following statements is false?

 

A. Backtesting is a technique to validate the performance of the strategy on past data.

B. Backtesting is a technique to optimise the strategy returns.

C. You should only assess the returns while backtesting.



1. Backtesting is a technique to validate the performance of the strategy on past data.

2. Backtesting is a technique which uses only historical data.

3. You should only assess the returns while backtesting.





 

2

Hi Shay,



Thanks for pointing this out. To avoid any confusion, we have rephrased this question.