If a trading rule has been tried on data other than that used to produce the rule and found to be accurate,this is known as:
A)consistency.
B)relative strength.
C)out-of-sample validity.
D)a filter rule.

Question

Quizplus · Accepted Answer

Out-of-sample validity refers to the ability of a trading rule to perform well on data that was not used to develop the rule. This is an important measure of the rule's effectiveness, as it indicates whether the rule is truly generalizable and not simply overfitting to the data it was tested on. Therefore, C is the best answer as it accurately describes the situation.

If a Trading Rule Has Been Tried on Data Other