Validation Methodology
A five-step framework designed for repeatable, execution-aware strategy evaluation.
Workflow
Sequential process emphasizing realism, stress testing, and institutional reporting discipline.
Validation Workflow
Sequential process emphasizing realism, stress testing, and institutional reporting discipline.
01
Strategy Definition
Define logic, trade constraints, assumptions, and expected edge boundaries in explicit terms.
Why execution-aware testing matters
Backtests without implementation constraints overstate practical edge and understate deployment risk.
Expected Return Distribution Shift
The shape of outcomes changes under realistic execution assumptions
Naïve Backtest
Execution-Aware
Methodology emphasis: distribution-aware diagnostics, not single-metric storytelling.
Use the methodology in your validation workflow
Run diagnostics through the lab or commission an analyst-led review.