Ep. 408: The Force Awakens with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
How to Deal With Overfitting in Finance
Overfitting is when you propose an overly complicated model to explain something rather simple. An overfitted strategy will likely underperform when faced with new data, be it out-of-sample the analyst has not yet looked at or in place into live trading. A good way for an investor to see how a company deals with and reduces overfitting is by analyzing its culture.
Play episode from 17:07
Transcript
