01A good specification removes choices
“Buy when the trend improves” leaves the signal, timeframe and execution undefined. A testable alternative names two lookback windows, describes a crossover on completed candles, and chooses when the resulting order can fill. The specification should be clear enough for two people to implement the same rule.
02Stock data requires its own questions
Ask how the data treats splits, dividends, trading sessions and delisted securities. Adjusted and unadjusted prices answer different questions. Selecting only today’s successful stocks can introduce survivorship bias. A single-stock example is not evidence of a broad market edge.
03Inspect the trades before the summary
Choose several entries and exits and check the rule against the information available at the time. Look for trades before indicator warm-up, fills on unavailable prices and inconsistent position sizes. Only then interpret the summary and benchmark comparison.