Data Science

Backtesting Biases and Risks

Definition Backtesting biases refer to how the results of a trading strategy backtest can be misleading. Description Here are the 8 common biases: Black Swan Reconciliation Survivorship Bias Spreads Cost of carry/Holding costs Inaccurate Price Simulation Change in Contract Specifications Look-ahead Bias Curve-Fitting and Optimization Bias Bias 1 – Black Swan Reconciliation Black swan events… read more »

Stochastic Calculus

Definition Stochastic calculus is a way to conduct regular calculus when there is a random element. Regular calculus is the study of how things change and the rate at which they change. Description Think of stochastic calculus as the analysis of regular calculus + randomness. Regular Calculus Regular calculus studies the rate at which things… read more »

Data Science

Definition Data science is a field that focuses on extracting useful information from data. Description The aim of data science is to get predictive or useful information from data. Data science has become a buzzword that can be broadly used to represent business analytics, business intelligence and predictive modeling. 3 Concepts of Data Science Data… read more »

Machine Learning

Definition Machine learning techniques enable computers to do things without being told explicitly how to do them. Description The essence of machine learning is the ability for computers to learn by analyzing data or through its own experience. Traditional Computing Rules: If an image has 4 legs, fur, pointy ears and whiskers, label it as… read more »

Big Data

Definition Big data is a field that involves analyzing and managing huge amounts of data. Description Similar to smaller data sets, the usual aim of big data is to derive insights from large data sets. There isn’t a specific size to determine if a data set is big enough to be considered big data. A… read more »