Fooled By Technical Analysis

Fooled by Technical Analysis: The perils of charting, backtesting, and data-mining, is available on a subscription basis. This is an online book and if you subscribe you will not get a hard copy or a PDF. You can use your username and password to read the book online. (Free extensions of the subscription period will be provided upon request.)

Last revision: November 18, 2023
Language: English
270+ pages (6″ x 9″ )
75 high-quality charts
Available online only
Table of Contents

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It was about time that someone spoke up about the perils of chart analysis, back-testing, and data mining clearly and honestly. In this book, you will learn why naïve chartists and quants have no chance of profiting from trading the markets and how expert chartists and quants attempt to maximize their winning odds. Many examples illustrate the points made in the book.

You will learn why:

Classical chart patterns are mostly unprofitable.
Chart analysis has a shaky logical foundation.
Statistical hypothesis testing is not applicable in system development.
The expectation formula deceives naïve quants.
Out-of-sample validation tests should be avoided.
Walk-forward optimization and Monte Carlo analysis are ineffective.
Frequent backtesting almost always leads to failure.
Most intraday traders fail, and many get ruined.
Experienced chart traders do not use patterns for market timing.
Focusing on invalidating strategies is important.

You will also learn about:

The limitations of backtesting and its proper use
Data-mining and data-snooping bias
Processes that contribute to data-mining bias
Popular myths about data-mining bias
The pitfalls of strategy validation tests
Effective trading system validation tests
Determining capital requirements and position size for system trading
The current alternatives to technical analysis
Cognitive biases that plague chart analysis
The effects of trading friction and trading timeframes on profitability

and much more.

Click here for the full table of contents. You may subscribe below.

Price: $65. A free extension of the subscription period will be provided upon request before the membership expires. Bonus: A free subscription to the book 15 Lies About Trading And Investing.

Terms

Online book subscribers do not receive a hard copy, ebook, or PDF. Instead, they can use the username and password selected below to read the books online. Note: There are no refunds for cancellations. After subscribing, you can download a receipt from your subscription details page.

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Fooled By Technical Analysis

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