In a 25 May 2018 Forbes article, Brett Steenbarger interviews David H. Bailey and Marcos Lopez de Prado on the growing crisis of pseudoscience in finance.
Here is an excerpt:
Imagine that a pharmaceutical company develops 1000 drugs and tests these on 1000 groups of volunteer patients. When a few dozen of the tests prove “significant” at the .05 level of chance, those medications are marketed as proven remedies. Believing the “scientific tests”, patients flock to the new wonder drugs, only to find that their conditions become worse as the medications don’t deliver the expected benefit. Some consumers become quite
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