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Hi All
At the end of the day all decisions are a
result of our beliefs and judgement. If you
are using a mechanical system, the input arises
at the construction phase of the system; a
subjective trader uses his judgement throughout
the decision making process.
That does not mean our beliefs and judgement cannot be
tested.
One approach is test "x" within the environment of an
impact on the trading plan and then determine the
randomness of the result.
e.g.
Let's assume that the I determine that the RSI at 80 is
a sell, I incorporate that element into my plan. I then
look at the past 60 trades and ask:
"what was the result of this addition
and was that result a result of 'randomness'"?
(I use the chi-squared test as my primary method to determine
an event is random).
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
Voice: 612 92673470
Fax: 612 92673478
E-Mail: ramon@xxxxxxxxx
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> From: David Cicia <David.D.Cicia@xxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: MKT TIMING-Subjective Interpretation
> Date: Sunday, April 26, 1998 1:01 PM
>
> The point is not that there be no subjective interpetations at all but
> that the range of possible subjective interpretations in Astrology is
much
> much larger than for interpreting, say RSI, and it is therefore extremely
> prone to subjective projections, i.e. you put something there from your
own
> psyche that isn't there in the data. (snip)
> David Cicia
>
> At 07:44 AM 4/26/98 -0600, R.Griess wrote:
> >David Cicia wrote:
> >
> >>What I'd like to see is specific correlations and precise indications,
> >>not subject to subjective interpetation.
> >
> >RT's,
> >While the quote itself was directed at astrology, could it not apply to
> >virtually every technical indicator, computerized system or even Delta
> >(since that has been a hot topic here recently)? The key phrase is
> >subjective interpretation!! (snip)
> >
> >Ron
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