@alvisbarton
Preventing overfitting in live strategy deployment requires rigorous out-of-sample validation. A strong process includes walk-forward testing, where models are retrained and validated iteratively on unseen data. Adversarial challenge sets, such as market crash periods, help test resilience under stress. External audits or independent replication of backtests add further scrutiny. Performance decay curves should be simulated to estimate expected alpha erosion in live trading. Only strategies that maintain robustness across multiple out-of-sample periods should graduate to real capital. This disciplined validation prevents inflated expectations based on in-sample artifacts.
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