Backtesting and Data Mining are techniques that are influential and worthy if we use them in the approved manner, however traders often exploit them. Therefore, we’ll also explore two common pitfalls of these techniques, known as the multiple hypothesis problem and overfitting and how to overcome these pitfalls. Backtesting is just the procedure of using [...]
Search Results for: back+test+moving+average
How to Take a Loss
June 24, 2009 – 5:01 pm
There are quite a few books written on how to make money in the market. Some of them are even written by people who have made money as traders! What you don’t see often, however, are books or articles written on how to lose money. “Cut your losers and let your winners run” is commonsensical [...]
The Chat Room with the Magic CCI Indicator
June 21, 2009 – 6:45 pm
About two years ago I entered a trading slump. I didn’t know what to do to break out of it. When I don’t know what to do I surf the internet. I knew the answer must be out there somewhere. I needed a fresh trading idea. I began hunting around and came upon a chat room that dealt with only one indicator. I was intrigued. Here was a room with several hundred people all focusing their attention on two or three markets, and taking the trading signals generated by this one indicator. And it was free. How good could a free chat room be? Why would anyone put all that effort and work into something for free? It didn’t make any sense. I was even more intrigued.
WIN 12 months subscription to ShareScope Gold 