Backtest Design Is 60% of the Result. Model Training Is 40%.
Most people obsess over model accuracy. Win rate. Precision. Feature importance. That’s 40% of the problem. The other 60% is how you build the backtest that validates it. What the Backtest Actually Controls A model tells you: this bar looks like a long. The backtest decides everything else: How big is the position? Where does the stop go? How does the stop trail? When do you decide the signal is gone? Do you re-enter after an exit? How do you handle overnight funding? Every one of those decisions compounds over hundreds of trades. ...