Backtesting : The most dangerous investing tool

A backtest is not a promise. It is a probability. And most investors treat it like the former.

Most backtested strategies look incredible on paper. Most of them also fail the moment real money enters.

In this episode of Leverage by Qode, Our fund managers Rishabh and Gaurav break down why the biases that inflate backtest numbers, the transaction costs nobody accounts for, and why a 40% CAGR on paper can quietly become something very different in live markets.

This is not an episode about distrusting quant research. It is about reading it correctly. Because there is a difference between a strategy that fits the past and one that is actually built for the future.

The best backtests, it turns out, are usually the boring ones.

Here how Qode uses backtest to ensure solid returns in volatile markets.