OverfitGuard

Single-strategy reality check

FAILS_OUT_OF_SAMPLE

The edge vanishes (or reverses) on data the search never touched. This is the classic data-mined mirage — do not trade it.

Deflated Sharpe (P edge is real)82.7%
Trials you tried500
Full-sample Sharpe1.25
In-sample Sharpe2.29
Out-of-sample Sharpe-0.68
Out-of-sample retention-29.7%

K-fold out-of-sample cross-validation (5 folds)

1.692.123.330.62-1.52

mean 1.25 · min -1.52 · positive in 80% of folds

NOT consistent — the edge is absent or negative in at least one sub-period.

2,600 periods · 35% sealed as holdout · Deflated Sharpe (Bailey & López de Prado) + sealed out-of-sample holdout.