Survivorship bias

Drawing conclusions only from the cases that survived, ignoring the ones that did not.

In plain English

The traders you hear about are the ones who are still here. Testing only on assets that exist today leaves out everything that went to zero along the way.

Example

A backtest on today’s top 20 coins over the last five years silently excludes the coins that were top 20 then and have since collapsed.

Trading Strategies

See also

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