Look-ahead bias
A backtest error where the rules use information that would not have been available at the time, such as the bar's closing price before it closed.
Why it matters for AI trading tools
AI-written backtest code can contain look-ahead bias that is easy to miss. Ask for and check the timing of every signal.
Related on TraderStacks
More terms: Overfitting · Out-of-sample testing · all terms
Education only. This definition explains a concept; it is not investment advice or a suggestion to trade.