Glossary › out-of-sample

Trading glossary · advanced

out-of-sample

Chart data you kept hidden while building your rules, used once at the end as a fair test.

The fuller meaning

Data held back while rules are built and tuned, then used once for a final test, for example about 30% of the history. If results collapse out of sample, the in-sample edge was probably fitting noise; walk-forward testing repeats the idea in rolling windows.

out-of-sample.

Related words

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