Your question is Backtesting Strategies and Statistics. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Describe your approach to backtesting trading strategies and the statistical methods you apply.
Cover data preparation, train and test period design, transaction costs, slippage, risk-adjusted performance metrics, and methods for assessing whether returns are statistically meaningful. Explain how you would detect overfitting, look-ahead bias, survivorship bias, and multiple-testing issues in a practical research workflow.
