Fooled by Randomness, Over-fitting And Selection Bias

This article originally published in Price Action Lab Blog.

If you have any questions or comments, happy to connect on Twitter:@mikeharrisNY

Disclaimer: No part of this article constitutes a trade recommendation. The past performance of any trading system or methodology is not necessarily indicative of future results. Read the full disclaimer here.

About the author: Michael Harris is a trader and best selling author. He is also the developer of the first commercial software for identifying parameter-less patterns in price action 17 years ago. In the last seven years he has worked on the development of DLPAL, a software program that can be used to identify short-term anomalies in market data for use with fixed and machine learning models. Click here for more.

Quant trader, blogger, trading book author and developer of DLPAL machine learning software. No investment advice. #trading #finance Website