Backtest Validation

Earlier losses can offset recent gains, while a fresh backtest resets capital and positions. Compare the account path before comparing 30-day and full-year returns.

Your strategy made more in the last 30 days than across the whole year. Start with two checks: did earlier losses offset the recent profit, and did both backtests enter that month with the same capital and positions? A fresh 30-day run starts a new account path. The full-year run arrives with its earlier gains, losses and open trades already attached.

In strategy backtesting, compare 30-, 90- and 365-day results against the same strategy revision, market, bar interval and cost assumptions. In AlgoRover, keep those settings beside the results.…