Overfitting vs System Selection
Quick comparison to help you distinguish these two crypto terms.
Overfitting
intermediate
strategy
The error of calibrating a trading system's rules too precisely to historical price data, producing inflated backtesting results that fail to replicate when the system trades live markets.
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intermediate
strategy
The structured process of evaluating multiple backtested trading systems against defined performance criteria and personal trading characteristics to identify the single system best suited for live deployment.
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