Beware Trading Systems That Guarantee High Profits with Minimal Risks. Small Sample Size Scam. http://www.financial-spread-betting.com/ PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Trading Systems Con-Game & How to Avoid Getting Fleeced. The Small Sample Size Backtesting Scam – if you are looking to buy a trading system or invest money in any way with some kind of strategy/system you need to be careful of the ‘small sample size’ scam. This is about showing you such a small section of trades that you can’t make an informed decision. As traders we want to take a trade that is profitable over time as many times as possible to see if we have an edge. Otherwise if you have a small sample size you’ve got lots of noise and random outcomes there. If you used a trading system based on tossing a coin, you and I both know that if we were to toss the coin a million times we won’t end up doing anything. If we had a small sample size and we tried to sell this product or trading system or investment vehicle if we were unscrupulous we would cherry pick the best trading period and boast about our performance.

Backtesting: Fraud or Self-Delusion? How long should you backtest a trading system?

Financial Scams to Avoid: The Small Sample Size Scam
1) Short Track Record
2) Unusual results
3) No real money invested

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