Backtesting Methodology
Methodology
Backtesting Methodology involves splitting historical data into training/validation/test sets.
Common Pitfalls
Avoid: data snooping (testing too many parameters).
Validation
Perform out-of-sample testing on 20% held-out data.
Note: This documentation reflects testing on Ubuntu 22.04 with Python 3.10. Adjust paths and commands for your environment.
Further Reading
- FreqTrade official documentation:
freqtrade.io/en/stable - CCXT exchange library:
github.com/ccxt/ccxt - TA-Lib indicators:
ta-lib.org