We will now repeat our experiment with the 900 trend trading strategies, but this time with trades filtered by the Market Meanness Index. In our first experiment we found many profitable strategies, some even with high profit factors, but none of them passed White’s Reality Check. So they all would probably fail in real trading in spite of their great results in the backtest. This time we hope that the MMI improves most systems by filtering out trades in non-trending market situations. Continue reading “Boosting Strategies with MMI”
Category: System Development
The Trend Experiment
This is the second part of the trend experiment article series, involving 900 systems and 10 different “smoothing” or “low-lag” indicators for finding out if trend really exists and can be exploited by a simple algorithmic system. When you do such an experiment, you have normally some expectations about the outcome, such as: Continue reading “The Trend Experiment”