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Trading strategy developers are not the only victims of data-mining bias. Stock chartists were the first victims long before backtesting became popular. A recent example is included. Data-mining bias is the result of the dangerous practice of using data multiple times ...

Using smooth features to limit the impact of outliers can potentially result in smoother equity performance of equity long/short and also directional strategies. We have tested a new option in DLPAL LS software that limits the impact of outliers by smoothing ...

In this article we use DLPAL S software to develop a short-term trading strategy for gold futures. We follow the development process outlined in this article. Spit data in-sample and out-of sample. Understand the data using statistical analysis. Identify strategies in the in-sample. Test performance ...

Most traders and investors who are active in social media probably got involved with the markers during the 90s bull market or after that with the S&P 500 index below 1500. The Primacy Effect explains why many get excited when ...

Year-over-year NASDAQ -100 return is close to 40% and while some market analysts call it extraordinary, it is far from that, as the chart below shows. When confronted with evidence that their claim is not sound, usually some analysts do not ...

In this article we investigate whether the addition of mean-reversion can increase the performance of an equity long/short trading strategy based on price action features. One fundamental trade-off in trading strategy design is that increasing the annualized return usually causes an ...

There is some consensus in financial social media that the Fed has caused inequality to rise and a market bubble. This consensus is probably driven by a bandwagon effect. Many believe that the policies of the Fed and especially its quantitative ...

Win rate instability is a cause of trading strategy performance deterioration, especially when the payoff ratio cannot be increased sufficiently to maintain profitability. If the win rate of a trading strategy is not stable, then there is the possibility of the ...

The returns of some popular ETF pairs diverge more frequently than traders assume in all timeframes. After the close of yesterday, Monday, January 27, 2020, a trader was astonished in Twitter by the fact that while GLD ETF rose on the ...

The strategy trades nine futures contracts in weekly mean-reversion mode based on a formula from a probability theory textbook. This is a weekly long/short strategy for futures contracts that uses the PSI5 algo that is based on a formula from a ...