ExpertMultiple choice
What does the probability of backtest overfitting measure?
- AThe chance that the strategy selected in-sample ranks below median out of sample
- BThe probability that the backtest contains a coding error
- CThe chance the strategy loses money in any given year
- DThe probability that the data was revised after the fact
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Reported in interviews at
More alpha and signal research questions
- The best of a hundred backtests, part 1 of 3Foundation
- You backtest 20 independent strategies with no true skill over one year, where…Applied
- A researcher checks each new idea against the same held-out period and keeps…Applied
- The best of a hundred backtests, part 2 of 3Applied
- A colleague shows you a backtest with a Sharpe ratio of 2.1 over three years.Advanced
- The best of a hundred backtests, part 3 of 3Advanced