What is Walk Forward Analysis?

A technique for evaluating a trading strategy by optimizing it on one segment of data and testing it on a subsequent "out-of-sample" segment.

In-Depth Explanation

This process is repeated "walking forward" through time to ensure the strategy is robust and not simply "over-optimized" for a specific period.

"The walk-forward analysis revealed that the strategy's performance decayed significantly outside of the original optimization period."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.