Hacker News·4 min read·medium
I backtested my own stock rankings. They lost to the index
C
caiocmpaes
✦AI Summary
The author explains how backtesting stock rankings using hindsight and survivor bias creates misleadingly high performance charts. They demonstrate that these models often fail to replicate real-world results because they rely on data that was not available at the time of investment.
Every fundamentals site can show you a chart where $1,000 turns into $40,254. Mine did, for seven months. The arithmetic was correct and the chart was worthless. The honest version of it argues against the product you're currently reading about.
businesseconomy
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