The unrealistic aspect of that backtest is the total leverage - the algorithm ends up borrowing something like $700k on an initial balance of $10k.
Why not prevent this borrowing in the backtest? Quantopian's philosophy is to report the results, rather than block you from trying outrageous scenarios.
Backtests are not predictive; they are a tool to investigate the behavior of your algorithm.
Why not prevent this borrowing in the backtest? Quantopian's philosophy is to report the results, rather than block you from trying outrageous scenarios.
Backtests are not predictive; they are a tool to investigate the behavior of your algorithm.