Monthly Archives: November 2010

The Bootstrap Method for Hypothesis Testing: Can it tell us anything we do not know?

The bootstrap method of computational statistics offers a way of reproducing the actual distribution of a population and it can be used with any sample statistic without relying on any assumptions about the data other than the basic assumption that they are … Continue reading

Posted in Trading System Analysis | Tagged , , , , | Comments Off

Price Action Trading

Price action trading is a trading methodology that, as the name implies, is based on price action. Not surprisingly, as it is the case with many other things, this terminology has been abused and misused by many. Of course, this is a … Continue reading

Posted in Trading System Design | Tagged , , , , , , , , , , | Comments Off

N-Bar Win Rate of Trading Systems

The win rate of a trading system is defined as the ratio of winning trades to total trades. The win rate, denoted here by the letter W,  is an important parameter because along with the ratio of average win to average loss, denoted … Continue reading

Posted in Trading System Design | Tagged , , , , , | Comments Off