Power Law Parameter Robustness Lab
Run 25 percentile settings with identical cash flows and costs to test parameter-neighborhood robustness
What is the Power Law Parameter Robustness Lab?
The robustness lab runs a neighborhood of buy/sell percentile settings with identical history, cash flows, costs and execution assumptions to test dependence on one lucky point.
How do I use the Power Law Parameter Robustness Lab?
Focus on the share beating DCA, the interquartile excess range and median drawdown rather than copying the single highest-return cell.
What should I watch out for?
Neighborhood consistency cannot eliminate historical overfitting; every cell still shares the same data and model assumptions.
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