Transparent by design, rigorous by default
Every report on Trading.hk follows the same transparent, repeatable methodology. We publish our process so you can evaluate the quality of our research yourself.
Transparent
Every assumption, every parameter, every test period is disclosed in the report. No black boxes.
Reproducible
The same inputs always produce the same outputs. Our engine is deterministic and version-controlled.
Rigorous
Four mandatory bias controls applied to every single backtest — no exceptions, no shortcuts.
Methodology Chapters
Select a chapter to explore each component in full detail.
Data Sources & Coverage
Where our data comes from, how it is validated, which exchanges and asset classes are covered, and how we handle corporate actions.
Backtesting Engine
Event-driven architecture, execution simulation, realistic transaction costs, position sizing models, and portfolio-level simulation across multiple instruments.
Bias Controls & Validation
The six sources of bias that invalidate most retail backtests — and exactly how we eliminate each one. Includes walk-forward testing and out-of-sample validation.
Performance Metrics
Complete glossary of every metric used in our reports — formulas, interpretation guides, thresholds, and why each metric matters for evaluating a strategy.
At a Glance
| Aspect | Our Approach | Why It Matters |
|---|---|---|
| Data history | Minimum 5 years, up to 20+ years | Covers multiple market regimes |
| Engine type | Event-driven, bar-by-bar | Eliminates look-ahead bias at the root |
| Transaction costs | 0.1% round-trip (HK), 0.05% (US) | Realistic, conservative assumptions |
| Fill assumption | Next-bar open after signal bar | No idealized same-bar fills |
| Universe | Includes delisted stocks | Prevents survivorship bias |
| Validation | In-sample + out-of-sample holdout | Ensures results are not curve-fitted |
| Metrics reported | 12+ standardized metrics per report | Consistent, comparable evaluation |
| Optimization | Walk-forward, not best-fit | Simulates real adaptive management |
Important Disclosure
All research published on Trading.hk is for educational and informational purposes only. It does not constitute investment advice, recommendations, or an offer to buy or sell securities. Our reports are not personalized investment advice — the same report is available to all subscribers. Past performance and backtest results do not guarantee future returns.
See the methodology in action
Browse our report library to see these principles applied to real strategies across multiple markets.