Many years ago I was called in to take a look at a funds management trading system that, despite a great deal of investment in time and energy during its 3 year development, had failed to beat a coin toss once it went “live”.
Prior to the launch the system had undergone extensive testing on 10 years+ of market data and had consistently out-performed the ASX 200 during the trails. Theoretically the system should have been a licence to print money. So why did it fail? The answer in the end was quite simple.
You can read the rest of this post here (see http://excapite.blogspot.com/2011/07/searching-for-patterns.html)
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Posted on October 29, 2010
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