Forward testing
Risk & psychologyRunning a strategy on data that did not exist when the rules were written.
In plain terms
It finds ambiguity in your own rules. It cannot test whether you will follow them with money at risk.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Walk-forward testing
Technical analysisDeveloping rules on one period of data, freezing them, then testing once on data never examined.
In plain terms
The strongest single defence against fooling yourself with a backtest.