> ## Documentation Index
> Fetch the complete documentation index at: https://kalpi.ai/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Sensitivity Analysis

> Verify the robustness of your strategy by shifting input parameters to identify overfitting.

**Sensitivity Analysis** is the ultimate tool for avoiding **Overfitting**. Overfitting occurs when you "fine-tune" your strategy parameters (like setting a 14-day RSI, or a 20.5% trailing stop-loss) so perfectly to past data that the strategy stops being a generalized system and becomes a memorized historical chart.

If your strategy is only profitable at a 14-day window, but loses money at a 13-day or 15-day window, you have overfitted your model. It will almost certainly fail in live, forward-moving markets.

## The Robustness Test

When you execute a Sensitivity Analysis, Kalpi varies your core input parameters (e.g., shifting asset weights or rebalancing windows) by ±10% to create a performance heatmap.

### How to read the heatmap:

* **The "Green Plateau":** If you see a large, flat area of profitability across multiple parameter variations, you have found a **Robust Strategy**. It is flexible, consistent, and highly likely to work in live trading.
* **The "Lone Peak":** If you see a single, tiny pixel of high profit surrounded by a sea of losses, you have an **Overfitted Model**. Discard this strategy immediately—it is a mathematical illusion.

<Note>
  Always aim for strategy parameters that sit in the middle of a "Green Plateau," rather than chasing the absolute highest peak of a "Lone Star" parameter.
</Note>