Purging and embargo are different
Question
Explain the different purposes of purging overlapping labels and applying an embargo around a test block.
Short answer
Purging removes training samples whose relevant information or label intervals overlap the test sample intervals. An embargo adds a buffer, commonly after a test block when later observations can enter training, to address remaining leakage or dependence linked to the data construction. Choose boundaries from label horizons and feature provenance. A fixed embargo is not proof of independence, and chronological forward-only designs still need label-availability checks.
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