The eternal question......))
Then how do we determine that the cc is not junk?
1) Forward testing?
2) Observations.
3)...
1. Forward
2. Observing real parameters in the past and comparing them with those found on the forward.
3. Not exceeding the real possible profitability.
real patterns
Have you found real patterns? then why do you need a fitting? most likely a fitting to stories gives you hope that there are patterns ;)
Then how do we determine that the TS is not rubbish?
- trade with a fixed lot
- number of deals on the history should be large
- exiting the market on a reverse entry signal
- Positive balance, profits should be fixed in time
If you achieve this, then add MM and you have a profitable system
Lawfulness is a necessary, essential, constantly recurring relationship of phenomena (from the wiki). A pattern always works. If it does not work even once, it is no longer a pattern, but an illusion.
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Besides, it is necessary to always consider the price of a pattern through the prism of making a profit. There are many regularities in the market which, in the light of profit, produce no result. At the same time, some clever people shove these "regularities" in the brains of beginner traders as great achievements of technical analysis.
Then how do we determine that the cc is not junk?
1) Forward testing?
2) Observations.
3)...
I guess I'll say it right, too:
That the market is more of a temporary pattern, shaped by the constant variability of the market and some constitutive interrelationship of phenomena.
The market is often in a buoyant uncertainty after rallies or corrections of different forces.
I think the principles of entry and exit should be different altogether.
I guess I'll say it right, too:
That the market is more of a temporary pattern, shaped by the constant variability of the market and some constitutive interrelationship of phenomena.
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Where is the line between fitting and real patterns?
Looking at the market we see that possibly existing patterns cannot be parametrically constant. Every system has a level of fit and a level of regularity of one or more events.
And the preponderance towards the second level is responsible for the rationality of the trading idea itself.
Thinking abstractly. The thoughts of others will be of interest.