RT Journal Article SR Electronic T1 Practical Applications of The Deflated Sharpe Ratio: Correcting for Selection Bias, Backtest Overfitting, and Non-Normality JF Practical Applications FD Institutional Investor Journals SP 1 OP 4 DO 10.3905/pa.2015.2.3.089 VO 2 IS 3 A1 David H. Bailey A1 Marcos López de Prado A1 Cathy Scott YR 2015 UL https://pm-research.com/content/2/3/1.10.abstract AB The Deflated Sharpe Ratio: Correcting for Selection Bias, Backtest Overfitting, and Non-Normality David H Bailey Marcos López de Prado Performance inflation is a serious problem in finance with ramifications for researchers, practitioners and investors. Here’s a new tool to help you separate legitimate empirical findings from statistical flukes: The Deflated Sharpe Ratio (DSR).In this report and accompanying video interview, Marcos López de Prado of Guggenheim Partners and Lawrence Berkeley National Laboratory outlines the three primary causes of performance inflation and offers practical advice on what to do about them.