What you will learn
- Gross versus net results
- Selected trades and survivorship
- Backtest versus live record
- Unverifiable screenshots
Gross versus net results
Gross performance excludes some or all costs; net performance should specify which costs are included. Financing, conversion and subscription charges can be relevant. Ask for a reconciliation rather than assuming the label net has a universal meaning.
Selected trades and survivorship
Selected trades can conceal losing periods, closed accounts or abandoned strategies. A complete record needs a defined start, end and inclusion rule. A list of impressive winners is not a sample from which reliable expectancy can be calculated.
Backtest versus live record
A backtest evaluates historical assumptions; a live record includes actual execution under specific conditions. A demo record has additional limitations. These are different evidence types and should remain labelled even when all show positive results.
Unverifiable screenshots
Screenshots can omit account identity, cash flows, open risk and costs. A screenshot may illustrate a result but usually cannot independently verify the full sequence of transactions. Seek reconciled records with enough detail to reproduce the calculation.
Worked example
A promotion shows ten winning trades but no rule for selecting them. Even if each screenshot is genuine, the collection cannot establish the win rate because the number and outcome of excluded trades are unknown.
Try it yourself
Explain what additional records are required to assess the promotion's expectancy and drawdown claims.
Show the worked solution
You need all eligible trades over a defined period, costs, cash-flow treatment, open-equity observations and inclusion rules. Without these, both average performance and peak-to-trough loss can be selectively represented.
Apply this to your course project
Write a source-quality review of three hypothetical promotional claims.
Keep the calculation inputs, assumptions and decisions with your work. Practical exercises are self-reviewed; the scored knowledge checks assess the questions shown, not an independent certification of practical competence.