How to Avoid Confirmation Bias in Trading

Before you started, I'll say this in a negative way, but you did a certain bias or certain understanding about systematic strategies to begin with going in. Yes, yes. Okay. Yeah. When you're doing this kind of thing, look, it wasn't a PhD or an academic document, but I was mindful not to look for results through my observation and say, right, I want to find something which confirms my preexisting views. We have a tendency only to pick out those data points which confirm our preexisting prejudices. Of course, that leads us into losing trades. What it is, is that momentum trading works as long as you take the effort to learn the principles

Play episode from 10:30

Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app