Category Archives: Trading System Synthesis

Deterministic Machine Design of Trading Systems With Strict Cross-Validation

A high win rate trading system for SPY was machined designed using a deterministic method and a simple predictor of price. Cross-validation of in-sample results was performed on out-of-samples of SPY and of an anti-correlated security. Share

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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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Pattern Search and Quantitative Analysis: Examples from the Australian Stock Market

The objective of this blog is to show how one can use Price Action Lab to search for price patterns and analyze their significance using available tools. The examples are from the Australian market and include an index and a … Continue reading

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