Survivorship Bias—A Wake-Up Call by Dion Kurczek
There’s more to trading systems than developing buy and sell signals. Here’s one aspect you may not have been aware of that could make a difference to your backtesting results.
When I first began my research into technical analysis and trading system development—that would have been around the year 2000—I was focused on trading system rules and code. I spent countless hours developing my own backtesting platform, and ensuring the logic for my trading models was expressed correctly and that the results were accurate. But there’s more to system trading than developing buy and sell rules ...