Hi everyone,
I've created a comprehensive guide for robust backtesting in QuantConnect that consolidates best practices for validating strategies before live trading.
**GitHub Repository:** https://github.com/Neyt/quantconnect-backtest-improvement
## What's Included:
✅ **Walk-Forward Validation** - Code examples for splitting data and avoiding overfitting✅ **Transaction Costs** - How to implement realistic fees and slippage models✅ **Out-of-Sample Testing** - Best practices for reserving test data✅ **Parameter Sensitivity Analysis** - Using GetParameter() for robustness testing✅ **Implementation Checklist** - Track your validation progress✅ **Complete Code Examples** - Ready-to-use Initialize() templates
## Use with AI Assistants
The guide is designed to be used with ChatGPT, Claude, or other AI coding assistants. Simply copy the relevant section and paste it with your algorithm code to have the AI implement the validation technique.
## Why This Matters
Backtests can lie due to:- Overfitting (curve fitting to noise)- Look-ahead bias (data leakage)- Market friction (ignoring real trading costs)
This guide helps you validate strategies properly using industry best practices and QuantConnect's official documentation.
Feel free to fork, contribute, or suggest improvements. Hope this helps the community avoid costly mistakes in live trading!
Best,Ney
Ney Torres
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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