What else can I do besides paper trading to see if it’s not overfitted?
u/amnitrade ·
Reddit — r/algotrading
· February 23, 2026 at 03:45
· ⬆ 17 pts
· 💬 9 comments
| View on Reddit ↗
AI Summary
Summary
The author (u/amnitrade) has developed a daily trading algorithm that uses the Relative Strength Index (RSI) to select one ETF to trade from a universe of ~50, including triple-leveraged ETFs.
The author is concerned about overfitting, as the backtest period is limited to approximately one year (from 2023) due to the recent inception of some of the ETFs in the trading universe.
The author is seeking validation methods beyond backtesting and Monte Carlo simulations, and plans to paper trade the strategy to confirm its perceived edge.
Quality assessment: This is speculative. The author presents a concept for a trading strategy but acknowledges its significant limitations, primarily the short backtest period and the risk of overfitting. It is an idea in the validation phase, not well-researched due diligence (DD).