Outlines thirteen principles for safe and effective backtesting of stock-picking strategies. Warns investors of common backtesting traps.

How to Backtest a Trading Strategy Using Data and Tools Backtesting can provide plenty of valuable statistical feedback about a given system. Some universal backtesting statistics include: ...

I explain why backtesting can work well--the relationship of in-sample to out-of-sample performance--and why sometimes it presents major problems.

Options Strategy Backtest: Using the benchmarks calculated in the Technical Analysis Backtest, the top 2 performing holding periods and top 5 technical indicators are used to generate trading signals.