If a trading rule has been tested on data other than that used to produce the rule and found to be accurate, this is known as:
A) consistency.
B) relative strength.
C) out-of-sample validity.
D) a filter rule.

Question

Quizplus · Accepted Answer

Out-of-sample validity refers to the testing of a trading rule on a different dataset than the one used to create it, to ensure its accuracy and reliability.

If a Trading Rule Has Been Tested on Data Other