Learn Backtesting
Learn what historical tests establish, then inspect information timing, costs, simulated fills and unused evaluation periods.
What you will learn
A favorable return is not enough to assess a test. Define its purpose, then review available inputs, decision time, execution assumptions and evaluation windows separately.
Follow the sequence below from definitions to input checks and public lessons. Distinguish numerical illustrations from actual run results.
Foundations and data
What Is Backtesting? What Historical Tests Can and Cannot Tell YouBacktesting applies trading rules to historical data. Learn how to read orders, simulated fills and skipped orders, and understand the assumptions behind the results using a public KabuForge example.What is lookahead bias? Using information that was not yet knownLearn how lookahead bias arises from information timing and the misuse of future evaluation labels.What is point-in-time data? Understanding historical availabilityDistinguish observation dates, publication times and revisions, and understand why frozen data is not necessarily point-in-time data.What is survivorship bias? The problem with today’s stock listUse fictional securities to examine the difference between survivors and the historical universe.
Execution and evaluation
What are transaction costs? Why fees change backtest resultsUnderstand fees, spreads, slippage and turnover, and learn how to interpret results after costs.What Daily Bars Cannot Tell You: Highs, Lows and Execution OrderIdentical daily OHLC values can hide different intraday paths. Learn why touching a price does not establish execution and how to state backtest assumptions.What is turnover? Distinguish one-sided and two-sided measuresCalculate turnover from fictional trades and check numerator, denominator and aggregation.What is slippage? Separate reference prices from fillsDistinguish price differences, fees, execution delays and actual fills with fictional trades.What Is Out-of-Sample Evaluation? Handling Periods You Have Already InspectedSeparate development and evaluation periods, understand how repeated inspection changes their interpretation, and keep a record of rules and data versions.Historical Paper Replay and Forward Testing: Different EvidenceSeparate replayed history, newly observed forward records and real trading evidence.
Try a public lesson
Your First KabuForge Backtest: From Inputs to ResultsUse the synthetic offline demo to learn inputs, validation, execution and result inspection before moving to real local prices.Test Japanese Equity Momentum with a Public SampleInspect the public 20-session momentum lesson through frozen inputs, prior-close signals, next-session open fills and skips.Read Backtest Results: Separate Returns, Risk and TradingRead reports in order: input identity, equity, drawdowns, fees, orders and position cycles, with explicit metric conventions.
Explore connected topics
Applies to: main source candidate (unpublished) · Public source docs/en_US/GUI_RESEARCH_COURSES.md
Reviewed · KabuForge