Model validation and backtesting specialists for your dedicated team.
Model validation establishes whether a model performs as claimed, through out-of-sample testing, backtesting against historical periods, sensitivity analysis and independent review of its assumptions and implementation.
Where model validation and backtesting fits in a long-term product team.
Lookahead bias is the defect that makes backtests worthless, and it is easy to introduce without noticing. Using data that would not have been available at the decision point, such as a restated figure, a survivorship-filtered universe or a feature computed over the full period, produces performance that can't be reproduced live.
Regime change is the deeper limitation. A model validated across a period of low volatility has not been tested under stress, and the conditions during which it matters most are exactly the ones absent from its validation. Selecting validation windows that include difficult periods is a deliberate act.
What your dedicated team does with model validation and backtesting.
Independent validation means someone who did not build the model reviewing it. The author is the worst reviewer of their own assumptions, not through carelessness but because the assumptions are invisible to the person who made them.
Having that capacity available without it being the same person is a team-composition question, answered by the way disciplines are assigned in a dedicated data engineering team.
Common model validation and backtesting use cases.
- Backtests free of lookahead Point-in-time data, so results reflect what was knowable at the decision.
- Validation across difficult regimes Stress periods deliberately included in the test window.
- Review by someone else Independent assessment, because authors cannot see their own assumptions.
Adding model validation and backtesting skills to your team.
Validation is staffed separately from model development within the same agreement, so every review is independent.
Model validation and backtesting specialists join your team remotely as dedicated, full-time team members, selected, employed and managed by us in Chiang Mai and Bangkok. Companies that hire offshore developers through Azendo add the skill at the next monthly cycle.
Tell us what your roadmap needs model validation and backtesting for.
A service delivery manager will reply with the specialists we'd suggest, the monthly capacity and what the first month looks like.
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