Glossary

Plain-language definitions for the terms used in our guides and calculator.

Backtest

A simulation that applies defined strategy rules to historical data under stated assumptions.

Adapting a strategy so closely to development data that its apparent advantage fails on unseen data.

The decline from a prior portfolio peak, measured over a specified period.

The total traded notional in a period. Both purchases and sales contribute.

A simulation using market observations without placing real orders; its fills depend on the simulator.

An operational control intended to stop new activity when a defined condition occurs.

Definitions are starting points. For product-specific terms, consult the original documentation linked in the guide.