This is the gold standard for verification. It tests the code on out-of-sample data to ensure the strategy hasn't been "overfitted" to the past. Conclusion
One of the greatest dangers in writing custom AFL is "curve fitting" or "over-optimization." This occurs when a trader tweaks code parameters to perfectly match historical data, creating a strategy that looks excellent in backtesting but fails in live markets. The verification process serves as a gatekeeper against this. By adhering to strict verification protocols, such as out-of-sample testing, a trader can validate that the code is robust. A verified code does not just replicate past price movements; it captures a genuine market inefficiency. Without this disciplined approach, a trader may deploy a strategy that is mathematically perfect but financially ruinous. amibroker afl code verified