Tag Archives: data

Link: Financial Backtesting: A Cautionary Tale

Financial Backtesting: A Cautionary Tale

Very interesting read. Highlights an interesting risk when backtesting data in the context of a simple investing strategy. Creating a strategy or theory around something that’s happened based on past information (the basis of any data analysis by definition), has the risk that the parameters that created the data (i.e. the market fundamentals) will change in the future.