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Algo Advantage 052 – Martyn Tinsley – Beyond the BackTest

Algo Advantage 052 – Martyn Tinsley – Beyond the BackTest

Posted July 17, 2026 at 10:30 am

Simon
Algo Advantage

Contributor Podcast

Algo Advantage Episode 052

In this Algo Advantage podcast, host Simon and guest Martyn Tinsley discuss why robust trading strategies need more than a good backtest – disciplined testing, sound data, and experienced judgment are essential.

The episode is available on Algo Advantage blog: https://www.algoadvantage.io/podcast/052-martyn-tinsley-1/


Excerpt

First the textbook, then add experience

“Even if you have skill, you can look wrong for a very long time.” – Cliff Asness

A backtest (or even many of them) can tell you whether a strategy survived a historical test. It cannot tell you whether you were testing the right idea, in the right way, for the right purpose.

That gap matters.

There are plenty of methodologies for minimising over-fitting and increasing confidence that an idea might survive the real world: statistical tests, stress tests, multi-market testing, walk-forward analysis and so on. It all looks scientific. Sometimes it is. Sometimes, without experience, we confuse statistical validity with real-world operability and out-of-sample viability.

What I keep landing on is this: robust strategy development demands two complementary forms of competence, and only one of them is obvious at the beginning.

Visit Algo Advantage to learn about this topic.

Disclosure: Interactive Brokers Third Party

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Algo Advantage and is being posted with its permission. The views expressed in this material are solely those of the author and/or Algo Advantage and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: API Examples Discussed

Please keep in mind that the examples discussed in this material are purely for technical demonstration purposes, and do not constitute trading advice. Also, it is important to remember that placing trades in a paper account is recommended before any live trading.

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