Mean-reversion and trend-following strategies have some kind of a theory behind them that explains why they might work, if implemented well. Pattern-recognition, on the other hand, seems like nothing more than data mining and overfitting. Could patterns possibly have any predictive value? In other words, is there any theoretical reason why a pattern observed in historical data would be repeated in the future, other than random chance or self-fulfilling prophecy where the pattern "works" because enough traders use it?
Subscribe to:
Post Comments (Atom)
-
In microsoft word, for paragraph formatting, you have this option: "Don't add space between paragraphs of the same style" Is t...
-
I use a form maybe 100 times a day. I can tab between the fields with no problem but most of the time I don't have to fill out the entir...
-
I'm trying to create a sort sort of semitransparent blur filter image that I can use over some backgrounds on a website. But Photoshop d...
No comments:
Post a Comment