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When Bot Backtests Beat Live Trades: The Survivorship Bias Timeline

September 5, 20261 min readWatch on YouTube

The allure of automated trading is undeniable: a bot, tirelessly executing strategies, promises consistent gains far beyond human capacity. You meticulously backtest a strategy, witness a simulated 42% gain, and confidently deploy it live. Weeks later, your account shows losses. What went wrong? This painful discrepancy, a common heartache for many algo-traders, is often the result of a powerful, insidious force known as survivorship bias, which can utterly destroy

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