Category Archives: Trading System Design

Free Demo of Price Action Lab Software

There is now a free demo of Price Action Lab available for download. Price Action Lab is the most advanced software for quantitative discretionary and systematic trading based on parameter-less price patterns. Share

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Using Random Data to Test the Integrity of Machine Learning Algorithms

In a recent blog I argued that the chances of finding a profitable trading algo via machine learning are for all practical purposes zero due to the large data-mining bias. One method of checking machine learning algorithms for the generation … Continue reading

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Fooled by Machine Learning Applied to Trading Algo Development

The chances of finding a profitable trading algo by applying machine learning are for all practical purposes zero. There is always a small probability of success  when using machine learning but one of the problems is that the results cannot … Continue reading

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Developing New Indicators and Trading Systems Constantly is a Dead-End Process

Trying constantly to find a new indicator or trading system that will generate profits is a dead-end process unless there is solid foundation to guide it. Programming and backtesting new ideas constantly hoping to find gold leads to higher probability … Continue reading

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Curve-fitting and Optimization

The subject of optimization and curve-fitting has received a lot of attention by trading system developers, especially during the last 10 years. There is a lot of confusion about this subject and different views, some even conflicting. Share

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