The 3 backtest metrics I actually trust (and 2 I've stopped using)

Most backtest reviews offer you 5 key metrics. I’ve stopped trusting 2 of them.
Here is the hierarchy I exploit to separate "backtest magnificence" from methods that really survive the 2026 Indian markets—and why the numbers most people brag about are sometimes just noise.

The three I Belief (The Sign)

1. Profit Issue: Gross income divided by gross losses. A Revenue Factor of 1.5 means your winners generated 50% greater than your losers. The Actuality: While 1.zero is "break-even," I gained't touch a technique under 1.5 anymore. Why? As a result of after the 2026 STT hikes and slippage, a 1.2 Profit Issue often evaporates. You need a "buffer of security" to outlive contact with the reside change.
2. Maximum Drawdown (MDD): The deepest hole your fairness curve fell into (peak-to-trough). The Reality: That is the "Psychology Metric." Robert Pardo (the authority on technique analysis) famously noted that real-world drawdown is usually 1.5x to 2x worse than the backtest. If your backtest exhibits a 10% dip, ask your self: "Might I handle a 20% hit to my actual bank account without turning the bot off?"
3. Sharpe Ratio: Return per unit of danger. The Actuality: Above 1.0 is "okay," however 1.5+ is the place the magic occurs. I’ve seen methods with triple-digit returns that had a Sharpe of zero.4. That’s not a technique; that’s a fortunate coin flip with high stress.

The 2 I Ignore (The Vainness)

1. Win Price: This is the last word "newbie lure." A technique with a 75% win price sounds invincible. But if your common loss is 4x bigger than your common win, you're quietly bleeding out. Win fee with out Profit Issue is just vainness.
2. Complete Return: On its own, that is meaningless. Technique A: 60% Return | 40% Drawdown Strategy B: 45% Return | eight% Drawdown Technique B is the skilled selection each single time. It's the "smoother experience" that retains you in the recreation lengthy sufficient to truly see these returns.

The Backside Line
I’m not saying Win Price and Complete Return are ineffective—they're context. But they aren't the signal.
In my engine room at FlyTradr.com

, the hierarchy is straightforward: Profit Issue > Max Drawdown > Sharpe.

What’s your "Lead Metric" once you take a look at a report? Do you prioritize the graceful equity curve (Sharpe) or the uncooked efficiency (Revenue Factor)?

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