Clarification on Survivorship Bias in Historical Data Used for Backtesting

[ARSHITKUMAR DOBARIYA-1752728479219]

Hi Team @Definedge @@Definedge-Experts

I’ve been analyzing trade results generated from one of the backtesting systems and wanted to confirm is survivorship bias accounted for in the data feed used by RZONE?

Could you please clarify whether the historical database used in Definedge backtests includes delisted or suspended stocks, or it only contains currently listed symbols?

[Krishna K-1753338218816]

Yep. I could see Sathyam computers in nifty50 . It means backtests are including delisted stocks.

[Nishant Bhandari-1773737014907]

Hello,
The historical data used for backtesting considers the stocks that were part of the Nifty 500 index during the selected period. So, if you are running a backtest from the year 2000, the backtest would use the Nifty 500 constituents that existed during that time, rather than only the stocks that are part of the index today.
Hope this helps.