Overfitting
Technical analysisAlso called: Curve fitting
Tuning a rule’s parameters until it fits historical noise rather than any real effect.
In plain terms
Every extra knob you turn fits the past better and the future worse.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Tuning a rule’s parameters until it fits historical noise rather than any real effect.
Every extra knob you turn fits the past better and the future worse.