Backtesting Frameworks

1---
2name: backtesting-frameworks
3description: Build robust backtesting systems for trading strategies with proper handling of look-ahead bias, survivorship bias, and transaction costs. Use when developing trading algorithms, validating strategies, or building backtesting infrastructure.
4---
5 
6# Backtesting Frameworks
7 
8Build robust, production-grade backtesting systems that avoid common pitfalls and produce reliable strategy performance estimates.
9 
10## Use this skill when
11 
12- Developing trading strategy backtests
13- Building backtesting infrastructure
14- Validating strategy performance and robustness
15- Avoiding common backtesting biases
16- Implementing walk-forward analysis
17 
18## Do not use this skill when
19 
20- You need live trading execution or investment advice
21- Historical data quality is unknown or incomplete
22- The task is only a quick performance summary
23 
24## Instructions
25 
26- Define hypothesis, universe, timeframe, and evaluation criteria.
27- Build point-in-time data pipelines and realistic cost models.
28- Implement event-driven simulation and execution logic.
29- Use train/validation/test splits and walk-forward testing.
30- If detailed examples are required, open `resources/implementation-playbook.md`.
31 
32## Safety
33 
34- Do not present backtests as guarantees of future performance.
35- Avoid providing financial or investment advice.
36 
37## Resources
38 
39- `resources/implementation-playbook.md` for detailed patterns and examples.
40