Backtesting a trading strategy? Most backtests lie: repainting indicators, overfitting, missing fees, missing perpetual funding, and one lucky period. Here’s the 5-point backtest checklist I use on every crypto trading bot, with real Bitcoin examples.
▶ Try a strategy that passed all 5 checks, on paper, free: https://autoalpha.trade/?utm_source=youtube&utm_medium=video&utm_campaign=v03-backtests-lie
In this video: • Repainting indicators (TradingView Nadaraya-Watson) and look-ahead bias • Overfitting: 630 Supertrend settings and out-of-sample testing • Trading fees and slippage on 1-hour and 4-hour charts • Perpetual futures funding rates (about 13 points a year on BTC) • Walk-forward analysis, Monte Carlo and testing on other coins • Max drawdown: the number every backtest should show
(then the chapters, disclaimer and hashtags from above)
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