L2 · Required

Backtests and costs

Use backtests and costs to make decisions inspectable.

What you should be able to do

Independently: Calculate returns, costs and turnover on a fictional trade log.

Suggested prerequisites

A short guide

Use backtests and costs to make decisions inspectable. Calculate returns, costs and turnover on a fictional trade log. Read the indicated source section, identify its key concepts and conditions, and work through the example. Record inputs, sources, units and assumptions. Keep your method separate from the result, mark unanswered questions, and review the output against the checklist.

An example

Gross profit 30 less cost 12 gives net profit 18.

Your task

Calculate returns, costs and turnover on a fictional trade log.

Start with this source

Read the indicated section relevant to backtests and costs and complete the applied task.

This source is awaiting renewed review. Try the task above and adjacent skills; reviewed sources will appear here.

Your learning checklist

Required items: 0 / 10 completed or already known

Device storage

Next: Read a role through its responsibilities

Checklist statuses are self-reported; exercise scores are recorded separately. You can reset any item.

Self-check

Try a practice set

Calculations and choices receive immediate checks. Review open responses yourself against the rubric. All examples are educational.

1. There is a 50% chance of +4 and a 50% chance of −2. Expected payoff?
2. How can you reduce future-information leakage?
3. After the robustness and repeated trials task, state one assumption, one supporting fact and one condition that would change your conclusion.