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[amibroker] Re: Backtesting and statistics



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MCS for one, which Tomasz has said he plans to add.  Hope I didn't
come across as too negative because chi-square has great utility in
trading, and Arthur Merrill in particular has written of (and I
believe pioneered) several great ways to apply it.  *But* (and I don't
want to sound elitist here) statistics is very confusing and it's
dangerous to use statistical tests of any type without completely
understanding their strengths and limitations, underlying assumptions,
etc.  Use a statistical test long enough without understanding one
teeny, tiny nuance and the market *will* very efficiently and
unemotionally cut your fingers off.  I think most people are better
served by visual things like charts and graphs, myself included, I
actually prefer pictures whenever possible.  For example, run
Pearson's on two highly correlated but curvilinear data sets and you'd
never know they're correlated.  But simply plot them and it's obvious.

--- In amibroker@xxxxxxxxxxxxxxx, Thomas Ludwig <Thomas.Ludwig@xxxx>
wrote:

> > I'm a huge fan of Arthur Merrill but can think of more
> > useful (statistical) functionality to add (in my opinion) if
Tomasz
> > were ever so inclined.
> 
> What do you propose?
> 


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