LSJ Veteran   Posts: 190 Joined: 7/23/2012 Location: Citrus Springs, FL  User Profile | Amen! My view toward trading was permanently altered with the book "Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals" by David Aronson. The distinction between "subjective" and "objective" methods is made. You cannot test subjective methods so every time you trade that way your biases kick in and you have no idea of what the outcome will be, even if you think(bias) you do. Objective methods on the other hand can be tested and produce statistical outcomes for future reference of the method. This is why OT is so valuable to me with the ability to test and statistically assess trading ideas. My biggest problem is remaining 100% objective. I must admit when I get a signal I eyeball the chart set I use for that symbol and consider myself the final filter. The dilemma is that if I intervene I have just thrown out the statistics. If I don't intervene and just take the signal it may fly in the face of what I know(think) about chart reading. Nobody said this was going to be easy! I can't recommend the book too highly for technical traders. | |
