TY - JOUR T1 - Practical Applications of The Deflated Sharpe Ratio: <em>Correcting for Selection Bias, Backtest Overfitting, and Non-Normality</em> JF - Practical Applications SP - 1 LP - 4 DO - 10.3905/pa.2015.2.3.089 VL - 2 IS - 3 AU - David H. Bailey AU - Marcos López de Prado A2 - Scott, Cathy Y1 - 2015/01/31 UR - https://pm-research.com/content/2/3/1.10.abstract N2 - The Deflated Sharpe Ratio: Correcting for Selection Bias, Backtest Overfitting, and Non-Normality David H Bailey Marcos López de Prado Performance inflation is a serious problem in finance with ramifications for researchers, practitioners and investors. Here’s a new tool to help you separate legitimate empirical findings from statistical flukes: The Deflated Sharpe Ratio (DSR).In this report and accompanying video interview, Marcos López de Prado of Guggenheim Partners and Lawrence Berkeley National Laboratory outlines the three primary causes of performance inflation and offers practical advice on what to do about them. ER -