Comments: The Joys of Speculation

A very insightful analysis. With regard to the CANSLIM system's track record, I would also point out that many systems can work when back tested, for example the "super Bowl Indicator". But back testing really proves nothing since a certain percentage of all approaches will naturally fall outside the expected rate of return by a statistically significant percentage simply due to the normal distribution of outcomes. The Super Bowl Indicator has worked great when back tested, but I wouldn't want to stake my economic future to it as a method for selecting investments.

Posted by Swammi in Solon at January 31, 2004 04:53 PM