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Curve fitting

This is adding complexity to a system in order to produce better and better historical results. For example, A simple system that is profitable but only 60% of its trades are winners. You notice that many of the bad signals occur near the beginning of the month so you filter those out by adding complexity that brings your accuracy to 70%. As you add complexity you can continue to improve your historical record to 90% accurate. However, the complicated system is much less likely to reproduce the 90% accuracy than the simple system was to reproduce the 60% accuracy.

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