1 – M2L2 01 Intro V1

Welcome back. In this lesson, we’re going to discuss common sources of Outliers, a few ways to spot them and some methods you can use to handle them. Outliers can be a real nuisance. If not handled intelligently, they can make results look better than they really are. They can lead to false trading signals which when used to construct trading strategies result in profits and losses that at best, differ from simulation results and at worst, are completely negative. We don’t want that, so let’s see what we can do about Outliers.