Blind Chimp

Investing is fraught with uncertainty—stocks may underperform, strategies can falter, and forward bias (the risky assumption that past performance predicts the future) is a persistent challenge. While forward bias can't be fully eliminated, its impact can be reduced by rigorously testing model resilience. We use tools like the Blindfolded Chimp Test, which confirms the model's effectiveness even with randomly chosen stocks. The test demonstrates that a diversified portfolio with proper risk management can perform well regardless of stock selection, challenging the notion that stock picking is the primary driver of returns.