TQQQ options education

Timestamped signals vs. modeled backtests

What a timestamp proves, what a model estimates, and why neither should be presented as an executed account record.

Short answer: A contemporaneous timestamp can prove when a signal was published. It does not prove a fill, position size, exit, or realized return. A backtest estimates results under stated rules and assumptions.

What the timestamp establishes

A source message posted before the evaluated move can establish that a direction or no-trade call existed at that time. It improves auditability and reduces hindsight editing. The record should preserve the source identifier, issue time, direction, model version, and any correction.

A timestamp alone does not show that anyone purchased an option, which strike or expiration they selected, the price they paid, whether the order filled, or when they exited.

Three provenance labels

  • signal-post-only: the published directional or cash decision is evidenced; no outcome is asserted.
  • modeled: an outcome is reconstructed from explicit market data and rules; it is hypothetical, not an execution.
  • market-observed: a directly observed market measurement is recorded, but it still is not a customer or account fill unless separately documented.

What a useful backtest must disclose

A reproducible test names its sample period, data source, signal timing, entry and exit rules, contract-selection rule, costs, slippage, treatment of missing quotes, and model version. It prevents look-ahead by using only information available at each decision time.

Results should be separated by provenance. Combining modeled returns with observed or executed results creates a number that cannot be interpreted honestly.

How to audit this site

Start with the public signal ledger, including losses and no-trade days. Follow source identifiers to contemporaneous evidence where access permits. Then read the methodology and assumptions before examining any aggregate. If a field is unavailable, the record should say so rather than infer it.

Primary sources and further reading

Sources document product terms and risks. They do not endorse Quant Paradise.