Trading Edge
Check indicator settings, trading rules, and the evidence behind a signal before using it.
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Latest Trading Edge Analysis
Technical signals, backtest failures, execution costs, market timing rules, and evidence that survives hindsight.
Apr 30, 2026
Does Technical Analysis Work? A Backtest Audit Before You Trade
Audit a technical trading rule before risking capital. Check its search history, realistic costs and untouched-data results with a worked backtest and worksheet.
Read the analysis →About this section and its research approach
Trading EdgeTest the Rule Before You Trade It
A trading signal is only useful after it survives the parts most backtests avoid.
We test technical rules against data-snooping, transaction costs, taxes, and out-of-sample evidence.
Backtest Evidence
Trading Costs
Out-of-Sample Tests
The Survival Test
How We Test a Claimed Trading Edge
A profitable chart in hindsight is not enough. The analysis has to show that the rule was defined before the result, survives realistic execution costs, and continues to work outside the sample that produced it.
01 · Signal
Was the rule defined clearly?
We separate testable entry and exit rules from visual pattern recognition that changes after the chart is already known.
02 · Friction
Does the edge survive implementation?
Turnover, spreads, slippage, taxes, and missed market exposure are included before a gross backtest is called investable.
03 · Survival
Does it work beyond the original sample?
We look for multiple-testing corrections, regime robustness, and out-of-sample evidence rather than rewarding one attractive historical period.
Backtest analysis for education and further research, not a recommendation to trade any signal or security.