Let me clarify, the .03 ranges were fake. The actual ranges are smaller in the middle and larger at the ends - a more normal distribution. I chose not to have the actual ranges and numbers on the uploaded graphs to keep what I am doing more confidential. Thanks.
So you intensionally deceive people while asking their opinion about your deception. I will ask ET to ban you for good. You deserve it.
The numbers in question had less to do with what I was talking about & I wanted to keep the real ones to myself for proprietary reasons. I was more focusing on the fact that there was an obvious pattern and wondered what you would call the trading strategy if you went long or short the security on a daily basis. You misspelled "intentionally"
Intentionally (sp) aside, the thread's op is trolling, and I dislike having to respond to artifical charts and graphs. It's no wonder nobody could figure out any of this, and this thread was a waste of everybody's time.
Why are you plotting this using discrete bins? Why not just plot the indicator versus next day return, and tell us the correlation coefficient? Then do the same for 100 sets of sampled data points (monte carlo) and get an idea about the error bars on that estimate?