Out-of-sample test
Technical analysisTesting a rule once on data that was not used to develop it.
In plain terms
The only backtest result worth much. Develop on two-thirds, test once on the rest, and resist the urge to tweak afterwards.
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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Testing a rule once on data that was not used to develop it.
The only backtest result worth much. Develop on two-thirds, test once on the rest, and resist the urge to tweak afterwards.