When Performance Is too Good to Be True

Posted by Michael Harris on April 7, 2019

Look-ahead bias is common in backtests by novice strategy developers but results affected by it are frequently displayed in social media and financial blogosphere . . .

backtesting

Michael Harris

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Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated performance results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Hypothetical trading results are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

When Performance Is too Good to Be True

Michael Harris

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When Performance Is too Good to Be True

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Subscribe by email

Subscribe and receive a free book

CFTC RULE 4.41

Copyright Notice

Categories