Dev Tools · 59m ago
Why Backtesting with Restated Financial Data Inflates Returns
Financial statements exist in as-reported and restated versions; using restated data in backtests introduces lookahead bias by assuming knowledge of revisions that hadn't occurred yet. Tradevo Data's dataset flags 18,772 restatements across 314,436 point-in-time rows, showing this is a systematic issue. The fix is to use only original values as of the filing date for accurate historical simulations.
Meridian48 take
A niche but critical warning for quant developers: the difference between as-reported and restated data can quietly distort backtest results, and most off-the-shelf datasets don't distinguish them.
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As-Reported vs Restated Financial Data: Why the Difference Matters for Backtesting →
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financial-databacktesting