glossary

Honesty grade

A letter, A to D, attached to every OptAlgo backtest that says how much of the result was simulated and how far it can differ from live trading.

An honesty grade is a rating from A to D that OptAlgo attaches to every backtest to say how realistically it was simulated. A means every fill was settled on real 1-minute data with exchange fees, funding payments and minimum order sizes. B relies on a few standard assumptions. C is usable but the findings list caveats. D means the run was not realistic and should be fixed before any number from it is trusted.

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01

Why a grade and not just a return

A return figure without its assumptions is not information. Two backtests can show the same 80% return, one with mid-price fills and no funding, the other with real spreads, fees and funding replayed bar by bar. The grade makes the difference visible before the number.

02

What lowers the grade

Fills that could not have happened at that bar's prices, orders below the exchange minimum, missing funding on perpetuals, a shorter history than the strategy's indicators need, or data gaps. The findings name each one so the fix is clear.

03

How it relates to the overfit check

The grade answers “was this simulated honestly?”. The overfit check answers “did you get lucky by trying many variants?”. A strategy needs an A or B grade and an ok overfit verdict before OptAlgo lets it run on paper.

faq

Honesty grade FAQ

Can a D-grade backtest be deployed?

No. Only backtests graded A to C can be deployed as a hosted strategy, and the findings of a C run are shown before you confirm.

Is an A grade a guarantee of live results?

No. It means the simulation was realistic. Live results still differ with liquidity, latency and market regime, which is why paper trading comes before live.

See the grade on your own strategy.

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