#TradingStrategyMistakes Over-Optimization – The Hidden Trap

🚫 Problem:

Many traders fall into the trap of curve fitting – making a strategy work perfectly on past data but fail in real-time markets.

❗Why It Fails:

Market conditions change: what worked in a bull market may fail in a range.

Over-optimization leads to false confidence and high drawdowns.

Backtest looks amazing, but forward testing is ignored.

✅ Solution:

Focus on robust strategies that perform across multiple market conditions.

Always run paper trading or forward test before going live.

Use performance metrics like win rate, expectancy, and maximum drawdown.

🧠 “A profitable backtest doesn’t guarantee future success — adapt or perish.