Canli Validation

Audit one strategy's return series in one call: deflated Sharpe, the minimum track record length for its Sharpe to beat the benchmark, and, with every variant's returns, the probability of backtest overfitting. Point returns_file at the backtest's CSV or JSON rather than copying long series into the call. Each check is the matching validate_ tool's result with its own receipt, side by side; the audit does not grade the strategy. Prefer it to calling those validators one by one when you have one strategy's return series. Uses one validation per check. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

SEC-reported financial history for one company from the canlicapital.com company reference (GET /company-data/{cik}.json), by cik or by ticker (resolved through GET /api/v1/company-tickers.json, companies in the release only). Without a concept it lists the available histories; with one it returns observations, newest first, each with its filing accession, form, filed date and unit, plus the SHA-256 of the original SEC response. No key required. Public company accounting reference, not market prices, returns, an investment recommendation, or ALPHAC performance. Validate a separately constructed return series with the validation API; accounting values are not returns.

Issue a free canlicapital.com validation key (POST /api/v1/keys) and hold it in memory for this session. Only needed before a validation when neither CANLI_KEY nor local mode is set; the read tools (get_receipt, service_status, company_financial_history) never need a key. Quotas: 1000 validations per key per UTC day, 5 keys per client per UTC day, 1048576 bytes per validation request, 1024 bytes per key revocation request, 20000 observations per series, 200 variants per matrix.

Fetch a stored verdict by receipt id (GET /api/v1/receipts/{id}) to re-read an earlier result. No key. To check that the receipt is genuine, use verify_receipt. The receipt is content-hashed, reproducible from the open-source core it names, and signed with Ed25519 by a key published at https://canlicapital.com/.well-known/canli-receipt-keys.json.

Whether the validation API is up, with quota constants (GET /api/v1/validate/status); check after a timeout before resubmitting. No key. This verdict is about the series exactly as submitted. The service never saw the data source, its costs, survivorship, or any lookahead in how the series was built.

Minimum backtest length, in years, before the best of N independent trials is not expected to reach a target Sharpe by luck, and with backtest_years, the most independent trials those years allow. Send effective_independent_trials, backtest_years, or both. Use it before or while planning a search, to size the backtest for the number of trials; once a search has a result, use validate_deflated_sharpe. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

Highest book Sharpe reachable by adding sleeves of this quality and correlation, the Sharpe at a sleeve count, and the sleeves a target needs. Use it for portfolio construction, to see what adding strategies can and cannot do; it validates no single strategy. This verdict is about the series exactly as submitted. The service never saw the data source, its costs, survivorship, or any lookahead in how the series was built.

Deflated Sharpe ratio: the probability (0 to 1) that one selected strategy's Sharpe beats the best Sharpe that luck alone would give across the variants tried, with the probabilistic Sharpe and that luck benchmark. Use it for the strategy you kept after a search, when you know how many variants were tried and how their Sharpe ratios spread; send the seven statistics or a return series, not both. With every variant's returns use validate_overfitting; to state luck as a trial count use validate_luck_trials; for a multiple-testing haircut use validate_haircut_sharpe. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

Haircut Sharpe ratio for multiple testing (Harvey and Liu, 2015): the Sharpe a single test would have needed once the number of tests is counted, by Bonferroni and for independent tests, and with the other tests' Sharpe ratios by Holm and BHY. Use it to report a Sharpe adjusted for the number of tests, as finance papers do; for a probability that the Sharpe is real, use validate_deflated_sharpe. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

How many skill-less strategies a search would have had to try for its best to reach this Sharpe by luck, and, with a trial count, the chance that it did. Calibrated by Monte Carlo. Use it to state luck as a count ("as good as the best of N random tries") or to test a result against the trials actually run; for a probability that the Sharpe is real, use validate_deflated_sharpe. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

Probability of backtest overfitting (0 to 1) by CSCV: how often the variant that is best in sample falls below the median out of sample. Use it when you have every variant's returns as a matrix (periods by variants); with summary statistics only, use validate_deflated_sharpe. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

Whether a paper or simulated performance record meets canli.paper-evidence.v0, with each failure's JSON pointer. Use it on a record document before publishing or relying on it: it checks structure and required disclosures, not whether the returns are good. This verdict is about the series exactly as submitted. The service never saw the data source, its costs, survivorship, or any lookahead in how the series was built.

Minimum track record length, in observations and years, for an observed Sharpe to beat a benchmark at a confidence level, and with observations, the record's probabilistic Sharpe so far. Use it for a live or paper record: how long it must run before its Sharpe is evidence. To size a backtest against the number of trials, use validate_backtest_length. A deflated Sharpe or overfitting probability above or below any threshold is not admission to anything and is not a forecast.

Check a validation receipt's Ed25519 signature offline against the canlicapital.com public key bundled in this package, that its output hashes to its output_sha256, and that its content hashes to its id. Send an id to fetch the receipt first, or a receipt already fetched. The receipt is content-hashed, reproducible from the open-source core it names, and signed with Ed25519 by a key published at https://canlicapital.com/.well-known/canli-receipt-keys.json.