What "simulated backtest" means
Why STS labels its numbers "simulated" — and why that honesty matters.
A backtest runs a strategy against historical prices to see how it would have done. "Simulated" means no real money was traded — it is a model of the past, not a live account statement.
Why the label is on everything
Simulated results skip real-world frictions: trades fill at ideal prices, there is no slippage, no hesitation, no fees eating in. Real trading is messier, so simulated numbers tend to look better than reality.
That does not make a backtest useless — it is a fair way to compare strategies and stress-test an approach. It just is not a track record, and it does not predict the future.
When STS shows a return, it says "simulated" right next to it. If a service hides that word, ask why.
A simulated backtest models the past under ideal conditions — useful, but not a real track record.
Not financial advice · for research and educational purposes only. Nothing here is a recommendation to buy or sell any security. All investing carries risk of loss.