Applying the scientific method to investing

The new field of experimental finance goes beyond backtesting

Plenty of investment managers describe their approach to investing as scientific. In reality, that only goes so far. Scientists use experiments to prove their theories. In finance, quants build strategies, test them out-of-sample, and then peddle them to investors.

Backtests are equivalent to experiments that can be run only once. There’s no way to tell how a strategy would have fared had history unfolded differently, or even why it performs one way or another at different points in time.  


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here