Backtesting and Strategy Evaluation 1 Section4 Lessons10 Weeks
Lesson 3: Strategy Performance Evaluation
Lesson Overview
Evaluating results helps determine if a strategy is viable.
Key Performance Metrics
Win rate
Risk-reward ratio
Expectancy
Drawdowns and Consistency
Maximum drawdown
Losing streak analysis
Understanding Sample Size
Avoiding small data bias
Testing across market phases
Key Takeaway
Performance metrics reveal the true quality of a strategy.