Zachary Aaron D Evans

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What is walk-forward testing in forex?

Walk-forward testing evaluates a trading strategy by dividing historical data into multiple segments. The system is optimized on one segment (in-sample) and then tested on the next unseen segment (out-of-sample). This process repeats across multiple periods, simulating real trading adaptation. Unlike traditional backtesting, walk-forward testing reduces overfitting risk and shows whether a system can adapt to changing market conditions. Professional algo traders use it to validate strategies before deploying them live. It is considered one of the most reliable ways to test long-term robustness of forex systems.