Define a crossover precisely
For a long-only example, enter after the short moving average crosses from at or below the long average to above it. Exit after the reverse crossover. Specify whether the averages are simple or exponential and whether they use closing prices.
Fix the timing
One reproducible assumption is to observe completed daily candles and fill at the next available bar’s open. This is an assumption to verify in the test report, not a promise that live trading would receive that price.
Set the portfolio boundary
Choose initial simulated capital, position size and whether fractional shares are allowed. State whether the test is long-only, whether leverage is excluded and what happens to an open position at the end of the period.
Avoid choosing the answer after seeing it
Select parameters and a development period before reviewing a separate evaluation period. Keep a record of variants you tried. A parameter set that looked best in the same data used to choose it needs further investigation.
Sources and next steps
- Premiss — supported research workflow ↗AI-assisted strategy creation, historical tests and inspectable code.
- Premiss current plans ↗Product allowances and execution boundaries.
- SEC Investor.gov ↗Public investor education and risk information.