How do understand Logical-Invest Backtests and evaluate the results?

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How do understand Logical-Invest Backtests and evaluate the results? 2017-03-03T15:29:46+00:00
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  • Vangelis
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    Post count: 154

    Logical-Invest uses extensive scientific testing of well understood academically validated behavioral principles of how the market performs when it builds a strategy. While we carefully avoid over fitting and work to ensure the strategies hold up under a range of market conditions, the real proof is how the signals performs with subscribers. That is why we reveal to you exactly when the strategy started trading, and how it has been doing “out of sample” in the documented record of signals to subscribers.

    On each of our strategies you will see a historical performance graph and table, as below.

    Some have longer historical testing due to the instruments available

    In the graph, you can see a clear line between before the strategy started live trading (the backtest period) and the live signal results. We also have shown a point where we made a small change to the model formula (more granular allocations). In the table below that, you can see each and every trade (except the current one) and how they did.

    In this way you should have everything you need to form judgement of how the strategy works in over different time periods & market conditions. Additionally, if within the 1st 60 days it is not a good fit for you, we refund all of your monthly or annual subscription.

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