The most successful hedge fund manager of all time makes his money trading predictive patterns in the markets (from the horse's mouth) in direct contradiction to your assertions, and all you can do is complain about wikipedia? You lose. Big. Over and out. Fletch
Oh, I guess it's over since you have proclaimed yourself the winner almighty genius eh? LMFAO, keep believing in your chart patterns and keep researching old company financials to determine stock prices. LOL just keep it up (Trying to convince someone by showing them the wikipedia article about it? That's just plain retarded)
Do your own research, my time is not worthless. Here, I will waste a few more seconds of my life on you: http://infoproc.blogspot.com/2005/11/simons-thorp-and-shannon.html As Mr. Simons put it - and this is about as specific as he would get - "Certain price patterns are nonrandom and will lead to a predictive effect." This is the same Dr. Simons that has posted 35% a year since 1998 after fees. EMT is approximate and price is not fully random. That's the truth. Do with it as you will. Fletch
EXACTLY ! if you "buy" stock it means someone sold it to you, right? if he sold it to you, it means that he don't beleive it will rise, right? (if someone believe price will be higher, WHY he will sell stock to you???) so if most people believe price will be higher then only way to buy stock is to bid for higher price, right? and "bid" at such level than someone stops to believe price will be even higher (if someone believe price will be even higher, WHY he will sell stock to you???) so it's absolutely obvious that price is just a game between those who believe price will be higher and those who believe price will be lower. If you seen LEVEL II quotes at least 5 minutes in your life you must understand that there is no "true" value for price, its just a war between "bid" and "ask" and you can make money if you play that game better than "average joe", just like in sport and in war.
called the bi nomial distriution With 15 in a row called Runs test..or another called Sign test also used to test if some data series is random...from one point to the next
if we are talking about random walks his individual case study is absolutely significant, given that there is a high number of trials.
actually, I'm not sure an efficientist would argue with that. I think someone would raise the point: is the market inefficient enough to let you make money? Or you will lose it anyway, because of slippage, commissions, etc? Don't really agree with that, I just thought it was fair to point it out.
I find some securities have a history of showing price change continuation, sometimes called trends. Attached is a trading simulation of Walgreens stock (symbol WAG) using random entry and exiting position when price decreases to less than the lowest price of the prior 30 daily sessions. Risk to protective stop is 1 %. Simulation begins 1 July 1985 ends 24 Jan 2007. Results are similar when I change the number of days for exit. General Motors stock shows similar results. I view back testing as identifying a property of price behavior that might be called tendency to trend. Once a trend characteristic is identified a trend following method might be applied at any time and might show an overall profit. I run 100 loops and sort the data from greatest profit to greatest loss. These are the results of 100 individual simulations. I observe that many of the low profit test runs (the simulations near the center of the x axis on the graph) also show a low (less than 100) number of trades. I suspect profitability of these trades is low because the system does not always trade often. Computer random number generators might not always trigger trading frequently enough to show large profit. Average profit is about $ 233,000, initial capital $ 100,000. Median profit is $ -200. The system shows greater than $ 100,000 profit in about 25 % of the simulation runs.