How to read a strategy profile

Look beyond the headline return

A high return with a deep drawdown means the strategy has lost a large share of its value at some point. Ask yourself whether you could hold through that.

Actual, backtested or simulated?

• Actual: results from real trading over the stated period.
• Backtested: a strategy's rules applied to past data — it never traded live.
• Simulated: modelled results, often with assumptions about execution.

Backtested and simulated results are especially prone to look better than reality.

Fees

A performance fee with a high-water mark is charged only on new profits above the previous peak. Check whether returns are shown net or gross of fees.