Build Better Strategies! Part 3: The Development Process

This is the third part of the Build Better Strategies series. In the previous part we’ve discussed the 10 most-exploited market inefficiencies and gave some examples of their trading strategies. In this part we’ll analyze the general process of developing a model-based trading system. As almost anything, you can do trading strategies in (at least) two different ways: There’s the ideal way, and there’s the real way. We begin with the ideal development process, broken down to 10 steps. Continue reading “Build Better Strategies! Part 3: The Development Process”

White’s Reality Check

This is the third part of the Trend Experiment article series. We now want to evaluate if the positive results from the 900 tested trend following strategies are for real, or just caused by Data Mining Bias. But what is Data Mining Bias, after all? And what is this ominous White’s Reality Check? Continue reading “White’s Reality Check”