10 Things You Can’t Learn From a Backtest

Over the last 8 weeks Paul, Chris and Daryl have produced a series of podcasts and videos on 8 of the most important investment decisions investors make.  Along with these ⁠podcasts⁠ and ⁠videos⁠ Paul and Rich have written ⁠Marketwatch articles⁠ on the same topics.

As a part of the discussion of these important decisions Daryl has updated over 200 tables of hypothetical returns that are used to support the recommended conclusions.

This week, Ben Carlson, one of our ⁠Truth Tellers⁠, has written an article on the inherent weaknesses of  backtesting.  While we have taken steps to minimize the potential problems with backtesting, Paul thinks Ben’s comments are worthy of consideration.  Along with his recent article, “⁠10 Things You Can’t Learn From a Backtest⁠,” we have included links to two of Ben’s past articles on the same topic.

⁠Backtests are Unemotional.  Humans are not.⁠ 

Roughly Right or Precisely Wrong

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