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Of course you offer no data or evidence to refute what I said, and instead launch your own ad hominem attack. If you can support a market model that is more accurate than the existing models, then you sir deserve a Nobel Prize.

That whole guide is an excellent introduction to DSP. All models are wrong because they don't capture enough of the complexity of the underlying process. Random walk with all of it's known problems, is still probably the best description of how prices evolve through time. Even guys with Nobel...

It's probably time for a good old fashion ad hominem attack, but I'll ignore it.

It's wrong, because DSP was developed to work on physical phenomena, such as waves from an earthquake, thermal fluctuations of electrons in a resistor, etc. Market data is generated by a completely different mechanism that only resembles waves. Markets are made of people and are sentient...

Sure, lots of them, RSI, pattern recognition, ADI, etc. Digital filters come from the physical world of digital signals processing (DSP), and are based on solid scientific and engineering principals. None of the other indicators are based on anything but pseudo-science at best. Of course using...

Perhaps not exactly correct, search on negative group delay. Can be used in TA indicators based on digital filters (i.e. lowpass, highpass, bandpass.)

Here we are again, VIX in Backwardation. I made money earlier this week by covering my long SVXY position from last week, so I had to try it again.

You could be 0.1 standard deviations above the mean, and that statement would be true. However, that doesn't guarantee you will be profitable. "Do something that most people are not doing, but prove it."

The VIX futures are in backwardation as of today (VIX3M/VIX ratio is less than 1.) I bought SVXY today in response. Your strategy on volatility moves like today?

But I don't care about being able to jump high enough to dunk a basketball, I just want my tushy to look good in a pair of jeans. Also, proper form is harder with squats. To do the movement properly, stand facing a wall with your toes almost touching, and get used to moving your body up and down...

Since the VIX futures term structure is usually Contango, perhaps one should only go long volatility when it goes to Backwardation. I actually like the idea of selling vol when the VIX3M/VIX ratio is less than 1, but I have yet to back test that theory.

All moving averages are low pass filters, meaning low frequencies in the data pass unattenuated, and high frequencies in the data are attenuated by the filter. That implies that you are modeling the market based on an example of a physical system of a signal plus random noise. All models are...

Analogous to this, to paraphrase Mike Tyson (yes I know): "Everybody has a plan until they get punched in the face."

Look through the code examples here and see if anything might be helpful. http://finance.bi.no/~bernt/gcc_prog/recipes/index.html

This is true of all technical analysis if you view the market as a random walk process. It seems random walk, with all of its' well known short comings is still the best model of market behavior. The switching of regimes between trend and chop (however they get defined) is randomly distributed...

Yes, but that is subjective to the eye of the beholder. If you want to take emotion out of the process, and especially if you are going to automate the trading method, you need a mathematically defined way of determining trend and chop.

If you are in to indicators, check out the work of John Ehlers. Specifically, his trend mode/cycle mode, and signal-to-noise analysis. These won't help you predict when the transition from trend to chop will occur, but can give you a quantitative definition of when you are in a particular mode...

The word "profitable" is a bit imprecise. All trading systems involve losses at some point. The more precise term would be "positive expectancy." Maybe semantics, but it gets people more use to the notion of probabilities of gains and losses, which is the reality of trading.

Traders lose because they are making market timing decisions on an essentially random moving target. Random walk is not a perfect description of price movement, we all know that, but it is still the best model. Traders use indicators in an effort to get better than 50/50 odds, but random walk...

To address the past few responses, it is kind of a philosophical debate you must have with yourself on which market model is best suited to your trading approach. Even random walks can appear to form trends. Really the best way to find a trading system with positive expectancy is to do proper...