The Bias-Variance Tradeoff foundational
Why a model that is deliberately a little wrong can generalize better than one that fits the past too closely.
Why a model that is deliberately a little wrong can generalize better than one that fits the past too closely.
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References
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Pseudo-Mathematics and Financial Charlatanism: The Effects of Backtest Overfitting on Out-of-Sample Performance
David H. Bailey, Jonathan M. Borwein, Marcos López De Prado, Qiji Jim Zhu
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— Notices of the American Mathematical Society