Survivorship bias in equity strategy backtesting

I have a question about backtesting for those of you already more familiar with the topic than me. I understand survivorship bias needs to be taken into account when a strategy for equities is to be applied to a group of stocks that somehow belong to a definable group, such as an index. However, is anything inherently wrong with backtesting a strategy specifically for a single stock in order to have it execute exclusively on that stock in a live environment? Does backtesting done this way somehow produce results that are not to be considered realistic for any reason?

Submitted November 07, 2020 at 01:44PM by cfq20

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