Historical tests are controlled simulations
Historical tests help evaluate strategy assumptions, but they depend on information quality, model settings, market assumptions, execution rules, and settings choices. They are useful, but incomplete.
Live markets introduce operational friction
Live execution involves broker conditions, connection speed, rejected orders, partial fills, downtime, and emotional pressure around intervention. These factors can change system behaviour.
A more disciplined testing path
A responsible path usually includes historical review, settings sensitivity review, walk-forward thinking, demo or small-scale validation, monitoring, activity history, and predefined risk limits.
Historical Testing
Live Validation
Risk
Monitoring