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Certainly, historical testing with a universe like the XAO or the ASX300 or ASX200 must be assumed to have some amount of survivorship bias. Interestingly, the ASX300 outperforms the XAO over the same 10 period, period. 9.24% to 8.82%. But I dont think this accounts for that big of a difference in the results Unfortunately no one seems to have comprehensive data AND even if we had comprehensive data, we need to make the universe dynamic to test accurately. So, in lieu of all the aforementioned, IMO, the best we can do is use a random entry/exit system as a bench mark and aim to beat it. As I said initially, if your system can't beat a system that has no edge when tested on the same survivorship biased data, then your system also has no or a negative edge.
Certainly, historical testing with a universe like the XAO or the ASX300 or ASX200 must be assumed to have some amount of survivorship bias. Interestingly, the ASX300 outperforms the XAO over the same 10 period, period. 9.24% to 8.82%. But I dont think this accounts for that big of a difference in the results
Unfortunately no one seems to have comprehensive data AND even if we had comprehensive data, we need to make the universe dynamic to test accurately. So, in lieu of all the aforementioned, IMO, the best we can do is use a random entry/exit system as a bench mark and aim to beat it. As I said initially, if your system can't beat a system that has no edge when tested on the same survivorship biased data, then your system also has no or a negative edge.
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