Comments on: In-Sample and Out-Of-Sample Testing https://easylanguagemastery.com/building-strategies/in-sample-and-out-of-sample-testing/?utm_source=rss&utm_medium=rss&utm_campaign=in-sample-and-out-of-sample-testing Helping you Master EasyLanguage Fri, 25 Sep 2020 13:51:04 +0000 hourly 1 https://wordpress.org/?v=6.8.3 By: Joe Marwood https://easylanguagemastery.com/building-strategies/in-sample-and-out-of-sample-testing/#comments/6703 Sun, 30 Jul 2017 04:48:02 +0000 http://systemtradersuccess.com/?p=12129#comment-6703 Good article. If you run enough back-tests you are bound to find a system that performs well in both out of sample and in sample. This is why I like to always incubate a system on real time data before taking it live.

Another good idea is a procedure called White’s Reality Check or MCP where you test the likelihood that the result was not by chance and try to take into account the number of trials. David Aronson talks about this in his book Evidence Based Technical Analysis.

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