Chapter 16: Strategy Simulation

Why Identical Weights Can Mean Different Strategies intermediate

A backtest is a time-indexed state transition, not a weight vector multiplied by returns.

A backtest is a time-indexed state transition, not a weight vector multiplied by returns.

Register to Read

Sign up for a free account to access all 112 primer topics.

Create Free Account

Already have an account? Sign in

References

The Elements of Quantitative Investing
Giuseppe A. Paleologo (2025) — John Wiley & Sons
Advances in Financial Machine Learning
Marcos Lopez de Prado (2018) — John Wiley & Sons
Man versus Machine Learning Revisited
Yingguang Zhang, Yandi Zhu, Juhani T. Linnainmaa (2024)
Pseudo-Mathematics and Financial Charlatanism: The Effects of Backtest Overfitting on Out-of-Sample Performance
David H. Bailey, Jonathan M. Borwein, Marcos López De Prado, Qiji Jim Zhu (2014) — Notices of the American Mathematical Society