Backtesting as a Scientific ExperimentMany traders fall into the trap of viewing backtesting as a prediction tool. They run a strategy, see

Backtesting as a Scientific ExperimentMany traders fall into the trap of viewing backtesting as a prediction tool. They run a strategy, see impressive historical returns, and assume the future will mirror the past. This is a dangerous misconception. Instead, you should treat backtesting as a scientific experiment. Your goal is not to prove that a strategy works perfectly in the past, but to evaluate whether it has a genuine edge that can survive real-world market conditions. This shift in mindset is the first step toward disciplined trading.The Illusion of Perfect Past PerformanceOne of the most common pitfalls is curve-fitting, also...