Back Testing Survivor Bias

another way to approach this is to find out what the chance is that a random stock gets delisted (P). Then you can make an assumption about the loss in case of a delisting (L). Now your total profit becomes a function of P, L, the initial % of capital you're investing (C) and the expected profit (R) from a simple backtest. The math should be straightforward.
 
Yes. If your system is short term, ignore it. Making sure your test data includes all market conditions is way more important.
Quote from joshdy186:

Does anyone have agood solution for dealing with survivor bias in a set of data being used for back testing?
 
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