No. of Recommendations: 0
I agree that backtesting is a complicated thing. Nevertheless, when somebody says "this will work", I like to see a backtest to determine if it has worked in the past.

It is also appropriate to do sensitivity tests, to see if a small change in one parameter can make a large difference one way or another. I have done some of that, but it is a large area to investigate - in fact it is unbounded.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.