In this webinar Ernie Chan talks about the main difference between algorithmic and discretionary trading - the possibility of backtesting a strategy. However, a poorly conducted backtest will give rise to false positives. Ernie discusses typical pitfalls and the many ways in which false positives can be avoided.
Ernie Chan has worked for various investment banks (Morgan Stanley, Credit Suisse, Maple) and hedge funds (Mapleridge, Millennium Partners, MANE) since 1997. He received his Ph.D. in physics from Cornell University and was a member of IBM's Human Language Technologies group before joining the financial industry. Ernie is Managing Member of QTS Capital Management, LLC., a commodity pool operator and trading advisor.