Day: December 6, 2023

The dangers of periodicity mismatch, such as using weekly data to trade daily data in backtesting, include distorted performance metrics, mistimed trade signals, and a heightened risk of overfitting, as the strategy may not adequately account for the nuances of different time frames

It is challenging to accurately replicate real-world trading results in backtesting due to the inherent complexity of financial markets, dynamic market conditions, and the difficulty in accounting for factors like slippage, brokerage, and behavioral nuances