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What is Look-ahead bias?

Using information in a decision (or in a backtest) that was not yet available at the moment of that decision.

In context

Look-ahead bias means using information in a decision that was not yet available at the moment the decision was made. Imagine betting on yesterday's horse races while holding today's newspaper: you would look like a genius, and you would learn nothing about betting.

From Chapter 12: Honest Research: Testing Ideas Without Fooling Yourself

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Backtest

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