Part 5/8:
The thrill of investing back tests may emerge from the hypothetical affluence depicted within them — like turning a mere $100,000 into an astonishing $11 million over a decade. Yet, this illusion of profitability often mirrors the most complex formulas, ultimately overshadowing the vital question: why do the lines go up?
Is it truly feasible to generate outrageous returns using simple strategies? While it is indeed possible to concoct various back tests to create illusions of success through technical indicators, one must tread cautiously. A back test should serve as a validation of a sound investment principle, rather than a desperate attempt to unearth a hidden edge in the market.