Introducing Selection Bias Into the Trading Process

The moment we introduce competition into a selection process and choose one strategy over another we introduce selection bias. It's impossible to avoid this bias but it's very important to be aware of this bias because just the method of selection could mean that we're actually selecting random models or non-random models. So we need a way to eliminate the luck that exists in our performance results as a profitable appealing equity curve may simply be the result of overfitting. We can talk about some of the methods I deploy to reduce the chances of my models being overfit.

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