Important preface: This post is in no way intended to showcase a particular trading strategy. It is purely to share and demonstrate the use of the framework I’ve put together to speed the research and development process for a particular type of trading strategy. Comments and critiques regarding the framework and the methodology used are most …
In the last article, I described an application of the k-means clustering algorithm for classifying candlesticks based on the relative position of their open, high, low and close. This was a simple enough exercise, but now I tackle something more challenging: isolating information that is both useful and practical to real trading. I’ll initially try two …
In the first part of this article, I described a procedure for empirically testing whether a trading strategy has predictive power by comparing its performance to the distribution of the performance of a large number of random strategies with similar trade distributions. In this post, I will present the results of the simple example described …
