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FX · Building an FX strategy · lesson 8 of 9 · 9 min read · David Alexander

Overfitting, and how to recognise it in your own work

overfitting

Overfitting is tuning a rule until it describes the noise in a particular history rather than anything that repeats. It is the central failure of strategy development because it is indistinguishable from progress while you are doing it: every adjustment improves the result you can see, and the improvement comes from the part that will not recur.

This lesson is part of the advanced modules.

Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.