Glossary › in-sample

Trading glossary · advanced

in-sample

The part of old chart data you use to build and tune your rules.

The fuller meaning

Historical data used to design and tune a strategy. Performance there is flattered by fitting, so part of the data is kept aside, for example about 70% in-sample and 30% out-of-sample for one final test; if results collapse out of sample, the in-sample edge was probably fitting noise.

in-sample.

Related words

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