What it means

Overfitting happens when a tool starts capturing noise and one-off patterns instead of stable market behavior.

What to watch

If tiny parameter changes radically alter results, that is often a warning sign that the model is too fragile.

Where traders usually run into this

Overfitting is most useful once it is tied to a concrete page, chart decision, or workflow question.

  • Optimization keeps this term attached to a real glossary instead of leaving it as standalone jargon.
  • Backtest keeps this term attached to a real glossary instead of leaving it as standalone jargon.
  • Expectancy keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Optimization. That page is the fastest way to see how overfitting shows up in a real glossary workflow.

Optimization Glossary