Algo trading system gives 8371% profit in backtesting. Is it real?

Similar Q has been asked a few thousand times.

You can SEARCH for the answers.

Also You have to test it with real $$$$.

Similarly there are trading systems which yields 100% win rate.


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Someone has published some Python backtesting code that claims to have made 8371% profit.
Can some experts here analyse/verify/confirm/comment it? :
"An Algo Trading Strategy which made +8,371%: A Python Case Study
Backtesting of a simple breakout trading strategy with APIs and Python"
By Nikhil Adithyan
More...
Good Morning Quanto,

I have an algo trading system I built the other day that made 20,000% in one month in back test. And another that made 100,000% in back test.

Lol just kidding.

But here is my point. You have to run it live for a year or two to see if theory matches real time.
 
Quanto said:
Someone has published some Python backtesting code that claims to have made 8371% profit.
Can some experts here analyse/verify/confirm/comment it? :
"An Algo Trading Strategy which made +8,371%: A Python Case Study
Backtesting of a simple breakout trading strategy with APIs and Python"
By Nikhil Adithyan
More...

You scan for a strategy that matches a certain period of time in the past. How difficult is that? This activity is the main scamming method for subscriptions, lessons, EA marketing etc.
 
tsfx said:
You scan for a strategy that matches a certain period of time in the past. How difficult is that? This activity is the main scamming method for subscriptions, lessons, EA marketing etc.
More...
You mean curve-fitting? :-)
 
But the question is: did the guy apply such a dirty-trick to get that result?
I can't believe he did, but I don't have time to check it; maybe some of you guys can do a deep analysis...
 
One major problem: it is a long-only strategy on AAPL, which returned 100,000% since 1993 (approximately 20 cents to $200, dividends reinvested). So this strategy actually vastly underperformed a buy-and-hodl strategy over the same period, and hence is totally worthless.


Quanto said:
Someone has published some Python backtesting code that claims to have made 8371% profit.
Can some experts here analyse/verify/confirm/comment it? :
"An Algo Trading Strategy which made +8,371%: A Python Case Study
Backtesting of a simple breakout trading strategy with APIs and Python"
By Nikhil Adithyan
More...
 
Occam said:
One major problem: it is a long-only strategy on AAPL, which returned 100,000% since 1993 (approximately 20 cents to $200, dividends reinvested). So this strategy actually vastly underperformed a buy-and-hodl strategy over the same period, and hence is totally worthless.
More...
But it did it with less risk! :p
 
Quanto said:
Someone has published some Python backtesting code that claims to have made 8371% profit.
Can some experts here analyse/verify/confirm/comment it? :
"An Algo Trading Strategy which made +8,371%: A Python Case Study
Backtesting of a simple breakout trading strategy with APIs and Python"
By Nikhil Adithyan
More...

I like how article starts off "well, we're not going to use traditional systems like rsi/sma crossover"..
then proceeded to using fuckng donchian channel as if it's such a revoutionary new strategy.
 
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