Validation is most useful when you inspect the evidence behind its summary.

Confirm a fair comparison#

The Backtest and live trades should represent the same Saved System, rules, result unit, and risk basis. Their dates can differ, but the behaviour being compared should be meaningfully similar.

Review the comparison#

  1. Start with the trade counts and covered periods.
  2. Compare expected-value evidence.
  3. Compare downside and loss behaviour.
  4. Compare consistency across each sample.
  5. Check whether execution or costs changed.
  6. Review individual trades behind the largest difference.

Separate data problems from behaviour#

Missing trades, duplicates, wrong assignments, or mismatched units can create an artificial difference. Fix those issues before interpreting the result.

Continue over time#

Use Monitor when the live record is established and you want to track new change as evidence grows.