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Category Archives: Trading System Synthesis
Features of Price Action Lab v4.0
This post discusses the core features and capabilities of Price Action Lab (PAL). There are many ways of using this software and here only a partial list of the main features and capabilities of the software is presented. Links to some useful articles about trading are … Continue reading
Posted in Price Action Lab Patterns, Trading System Design, Trading System Synthesis
Tagged Price Action Lab Features and Capabilities
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Selection and Data Mining Bias in Trading System Development
Selection and data-mining bias in the process of trading system development often lead to random results. In a nutshell, selection bias tricks the process of cross-validation and falsely attributes significance to random results. The only chance of identifying robust and non random trading systems … Continue reading
Posted in Price Action Lab Patterns, Trading System Synthesis
Tagged data-mining bias, selection bias, trading system synthesis
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A Trillion Ways To Be Fooled
Joe thought of a way that combines technical analysis indicators, exit signals, filters of all kinds and also optimizes performance by selecting the best parameters. He thought that if this is done on an in-sample of historical data, followed by a cross-validation of the results on … Continue reading
Posted in Trading System Design, Trading System Synthesis
Tagged fooled by randomness, Trading edge
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Announcing the Release of Price Action Lab v4.0
We are pleased to announce the release of version 4.0 of Price Action Lab. This is a major and significantly enhanced version of the software that provides more functions useful in developing trading system and identifying high probability short-term trading opportunities … Continue reading
A Robust Trading System Across the ETF Board
In this post the performance of the machine generated SPY2p5 trading system is analyzed for 10 ETFs with various degrees of correlation with SPY, ranging from highly correlated, to non-correlated and highly anti-correlated. The performance since the development of the system has been truly amazing across … Continue reading
Posted in Price Action Lab Patterns, Trading System Analysis, Trading System Design, Trading System Synthesis
Tagged SPY2p5 system analysis
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SPY2p5 Trading System Forward Performance
The SPY2p5 system was machined designed by Price Action Lab using an in-sample from SPY inception (01/29/1993) to December 31, 2008. Then the system was validated on unseen data, called the the out-of-sample, from January 2, 2009 to April 5, 2012 and … Continue reading
Posted in Price Action Lab Patterns, Trading System Design, Trading System Synthesis
Tagged forward testing, Machine design of trading systems, SPY2p5 system
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Price Action Lab Software Features
This is a list of the main features of Price Action Lab (PAL). There are many ways of using the PAL software and here only a partial list of the core capabilities of the software is presented. Links to some useful articles about trading are … Continue reading
Posted in Price Action Lab Patterns, Trading System Synthesis
Tagged Price Action Lab Software
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Backtesting Robustness Index
In this post I introduce the general form of the Backtesting Robustness Index (BRI) I have developed and I give an example of its application to price patterns. This robustness index provides just another way of dealing with the notorious problems … Continue reading
Posted in Trading System Analysis, Trading System Design, Trading System Synthesis
Tagged backtesting robustness index, curve-fitting, optimization, pertubation
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Recommended Posts About Price Action Lab Software
The following posts about the features and operation of Price Action Lab are recommended to those who are interested in the software.
Posted in Price Action Lab Patterns, Trading System Design, Trading System Synthesis
Tagged Price Action Lab
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The Price Action Lab SPY2p5 System Outperformed the Market in 2012
The SPY2p5 system, which was generated by Price Action Lab on April 7, 2012, outperformed the market in 2012 by a wide margin.
Posted in Price Action Lab Patterns, Trading System Synthesis
Tagged Machine generation of trading systems, SPY2p5 system
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