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Tag Archives: cross-validation
Price Action Lab Alert for Thursday, August 23, 2012
This alert is about signals in two Dow-30 stocks, one long and one short. The new portfolio backtesting feature of Price Action Lab is used for cross-validation of the results.
Posted in Price Action Lab Alerts, Price Action Lab Patterns
Tagged cross-validation, Price Action Lab Alerts
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Short Signals in DIA That Are Common to SPY and QQQ
I call common patterns those that form in one or more securities that belong to a pre-defined group but are profitable in the history of all securities in the group. Here I discuss short signals received for the open of Thursday, August 16, … Continue reading
Posted in ETF Analysis
Tagged common patterns, cross-validation, DIA, out-of-sample testing
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New Key Features Added to Price Action Lab
The new features that will be part of the next major version release of Price Action Lab will include portfolio backtesting for cross-validation purposes. Specifically, starting with the next version release, Price Action Lab will allow portfolio backtesting of single patterns … Continue reading
Posted in Price Action Lab Patterns
Tagged cross-validation, portfolio backtest, Price Action Lab
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Price Action Lab Alert for Monday, August 13, 2012
This alert is about a long pattern in SPY. Portfolio backtest is used for cross-validation purposes. The alerts are for users of Price Action Lab and are fully reproducible. There is no randomness involved in the output of Price Action Lab.
Portfolio Backtest and Cross-validation of Machine Designed Trading Strategies
It is easy for trading system developers to be fooled by randomness especially when the underline process that is used for discovering the trading systems is in itself inherently random. Out-of-sample testing is not enough to guarantee statistical significance of any results obtained because … Continue reading
Price Action Lab Alert for Wednesday, August 1, 2012
This alert is about three stocks, one for a long position and two for short. Portfolio backtest is used to cross-validate the signals.
Cross-validation of Price Action Lab Scans
Price Action Lab has two main functions for discovering price patterns: search and scan for price patterns. The first version of the software came with an out-of-sample cross-validation feature for the search function. A much more powerful cross-validation option was added in … Continue reading