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Hi David,
In a previous message you said <whilst I'm flapping my gums (fingers
in this case) another topic that I'm still trying to understand curve
fitting >. Maybe I can help. Curve fitting is when you optimize right
up to today. IMHO, you should divide your testing "time" into thirds.
The first 2/3 data for optimization (in-sample), the last, or most
recent 1/3 data for confirmation (out-of-sample).
Now, picking the best variables for a stock is a differant question.
I have not read the Pring book. Is it good? A book that I have read
and explains testing is "Design, Testing, and Optimization of Trading
Systems" by Robert Pardo. You may want to pick this one up. It was
written in 1992 but the principles are what you're after.
Hope this helps,
John
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