Curve Fitting

Discussion in 'Strategy Building' started by jptrader62, Jun 8, 2004.

  1. Is anyone familiar with curve fitting and how it pertains to testing systems and indicators. Is it possible to fit the indicator parameters to coincide with the price movement or just to leave the parameters at the default levels. Does this actually work or is it time just to leave the parameters at default and find some other indicators that work better with price movement? Any help with this would be appreciated. JP
  2. Hi:
    Just a quick observation. Before you worry about optimization, you may want to look for correlation (and dependency) between your variables. Once you find a positive correlation between your data points, you will be able to pick an indicator that points you in the right direction with very little or perhaps no optimization. A good text to read is Perry Kaufman's "Trading Systems & Methods" published by Wiley. Good luck. Steve46
  3. Thanks Steve for the recommendation on the book. I've been looking for a book to help me with this.
  4. Positive (?) - Interesting! :confused: