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Trading glossary · advanced

forward test

Trying your finished trading rules on brand-new charts, without changing them, to see if they still work.

The fuller meaning

Running a frozen strategy on new data as it arrives, here in the app's simulation, for a set number of trades, then reviewing expectancy, win rate, maximum drawdown and profit factor against the backtest. Changing rules halfway spoils it, and a good simulated result is not proof for real money.

forward test, also called forward testing.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger