#Strategy-Testing

Backtesting is the ritual of projecting an investment strategy's future onto the mirror of the past, blending desire and confirmation bias. It plucks only the flattering numbers and parades them as proof of brilliance, only for real markets to reveal their indifference. As investors replay tales of old victories, they become prisoners of a sweet trap that validates their own illusions. The ritual offers a ticket to success in theory, yet that ticket often looks more like an admission stub to an obsolete performance. Ultimately, it eloquently testifies to the paradox that those who rely on history are most prone to being deceived by the future.