Optimising vs Overfitting: The Hidden Danger in Backtesting

May 29, 2026

Two computer monitors showing stock charts: left with a clear upward trend, right with erratic, noisy movement
Backtesting is a critical tool for traders to evaluate strategies using historical data, helping identify weaknesses and refine approaches. However, distinguishing between optimisation, which enhances strategy logic, and overfitting, which skews results to past data, is essential. Traders must ensure their strategies remain robust and adaptable for live market conditions.
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Risk Management Strategies for Traders

January 21, 2026

Philosophy and objectives The core idea: one edge is not enough Markets don’t behave the same way all the time....
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