Out-of-Sample
Definition
The portion of historical data held back and never used during strategy optimization. The 'test set' for validation.
Example
Testing a strategy optimized on 2021-2023 data against unseen 2024 data to verify it still works.
How Gilito AI Uses It
Out-of-sample performance is the true test of a strategy's validity. Strategies that perform well both in-sample and out-of-sample receive higher Gilito Scores.