Category Archives: Trading System Analysis

Release of Price Action Lab v7.0

We are pleased to announce the release of Price Action Lab v7.0.  The new version offers several new features and comes with an add-on that allows a massive increase in the capabilities of this quantitative trading software. Share

Posted in Price Action Lab Patterns, Quantitative trading, Trading System Analysis, Trading System Design, Trading System Synthesis | Tagged , | Comments Off

Long/Short Symmetry Effect on Trading System Performance

Although some quants prefer long/short symmetric trading systems there is no conclusive evidence that they offer any advantages, especially when dealing with markets with a structural bias. In this blog post I present two examples of the performance of trading systems that were … Continue reading

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

The Contrarian Z-Score and Why You Should Always Strive to Reject Trading Systems

When I first read about the z-score system some years ago I knew it was a fluke. Descriptive statistics cannot be easily converted to edges due to non-stationarity.  More importantly, a quant should be always suspicious and strive to reject systems. … Continue reading

Posted in Trading System Analysis | Tagged | Comments Off

Buying the Dips Can Provide That Much Needed Excess Alpha

Dip buying has been prevalent this year. There is a reason for that: dip buying has the potential of offering the excess alpha that is needed to overperform a benchmark index. Specific examples and statistics are included using the SPY proxy. Share

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

Functions and Capabilities of Price Action Lab Software

This is a brief introduction to the functions and capabilities of Price Action Lab software that is used by systematic and discretionary quant traders. Share

Posted in Trading System Analysis | Tagged | Comments Off