Back Testing CPI

Back Testing CPILesson 1 of 115 min read

The watch day

What to do with a morning your own plan had already cancelled, and how a review of it differs from the backtesting you already know.

This module reviews one release morning, market by market, after it finished. Every decision in it was a decision not to trade.

The day this is

The calendar carried a high impact inflation release, the consumer price index (CPI), meaning a monthly measure of prices.

Module 29 put that name on the list of four that cancel a day, and module 43 had you label the day before the week started. So there was never a question of trading. The question is what you do with the hours.

The day was decided on the weekend. The morning is still yours to use.

Watching is not idle

Module 43 already told you to show up on a watch day and start at your normal time.

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