Strategy Backtesting Rigor

Strategy backtesting rigor refers to the depth and accuracy of testing a trading strategy against historical market data. A well-designed backtest accounts for slippage, fees, and latency, providing a realistic view of how a strategy would perform.

In crypto markets, where data can be fragmented and noisy, rigorous backtesting is essential to avoid curve-fitting and over-optimization. It allows traders to refine their logic and understand the risks associated with their approach before deploying capital.

This process is a cornerstone of professional quantitative trading.