Registered: Feb 2008
07-12-12 07:08 PM
Quote from indicator777:
Jesus man! This is a curve-fitting monster! Are people that stupid? Oh man, people are that stupid it seems...
Go to price action lab blog and look for the post "Fooled by Randomness Through Selection Bias". It included a link to a simulation of a coin toss. Excellent post that shows how curve-fitting causes selection of random systems.
Yesterday in the price action lab blog they issued an alert for going long a stock at the open. (I will not mention the ticker because this is for his customers only). The stock fell a little by the close and I thought that was a losing call. Today the stock soared close to 4%. The signal was from his software. A lot of potential there. There is no indicator curve-fitting - only identification of repeated OHLC patterns. You specify the rate of repetition and the win rate to make this as conservative as possible. The signal yesterday had a win rate of about 77%. pretty good. This is the way to trade.