Backtesting vs Walk-Forward Validation

Quick comparison to help you distinguish these two crypto terms.

Backtesting
advanced
strategy

Backtesting is the process of running a trading strategy's logic against historical price data to produce a statistical performance estimate before committing any real capital to live deployment.

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Walk-Forward Validation
advanced
strategy

Walk-forward validation is a backtesting discipline that tests a strategy on out-of-sample historical data never used during development, verifying that its edge generalises beyond the period it was designed on.

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