Tag Archives: Machine generation of trading systems

Forward Performance of Machine Designed Trading Systems For 2012

Forward performance testing is considered the third and often the final stage before employing a trading system in actual trading. The first two stages usually involve the in-sample and out-of-sample testing. This is a report of the forward performance of trading systems for … Continue reading

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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. Share

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Price Patterns With Delayed Entry

The introduction of a delay in the entry of a position after a price pattern is formed can under certain circumstances act as a filter of price corrections that often follow. In the absence of a delay, positions may suffer an immediate … Continue reading

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Machine Designed High Reward-Risk SPY Trading System

In this example of machine generation of trading systems, the steps are presented for discovering price patterns with a high reward-risk ratio for SPY using the Price Action Lab search function. The in-sample results are tested on a portfolio of ETFs and also cross-validated in an out-of-sample to eliminate … Continue reading

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Developing Mean Reverting Systems with Price Action Lab

In this post I will discuss for the benefit of Price Action Lab users how the program can be used to find trading systems with mean-reverting performance. The specific notion of mean reversion that will be used in the examples is that of … Continue reading

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