What is Forward Testing?
Forward testing is running a strategy on new market data as it arrives, after the backtest is done, to see if the edge holds going forward. It can be done on paper or with small real size. Because the data is genuinely unseen, forward testing is a stronger check than any backtest of the past.
Why Forward Testing matters
It tests a strategy on data that did not exist when you built it, which is the fairest test there is.
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