Quote from Nattdog:
Rather than ask "does ta work" it may be more fruitful to ask a more specific question that can be properly refuted with evidence.
Scientific TA is defined by and distinguished from regular TA by the scientific method.
So, relevant issues to discuss here might be things such as:
-how to generate a useful hypothesis?
-Ideas for possible predictive relationships.
-examples or steps taken to quantify discretionary ideas into a precise, useful, refutable statement.
-how to apply scientific method for hypothesis testing in specific
scenarios.
-alternate types of hypothesis testing, experiences, techniques
-effects of changing cycles on a tested hypothesis
-simulation methods
-Useful technologies and software for scientific trading
-Scope of testing: General principals vs. specific trading rules.
-full automation vs. quant assisted discretionary trading.
I agree that your list is where to do the work.
hyp finds fault with my comments.
It is my opinion that the specific place to hypothesize is with Boolean statements and nothing else. The advantage that comes to the fore immediately is that you have eliminated probability as part of the effort. Building a set of TA tools, all of which are Boolean algebra based, allows one to have a comprehensive system for trading.
If there is single thing that affords automation it is this kind of modelling and subsequent development.
I named myself after two math elements: convergence and divergence. And I named the two cases of the four possible for items taken two at a time: cases 2 and 3.
There are many many TA elements and most of them do not pass the test of utility.
The OP proposes to go through them and detail out their scientific nature, if any. I would say most everyone who is a serious trader looks at everything he can in order to improve his trading. I certainly keep track of all the indicators and how they perform as the markets mature. I mark up pages of TA from A to Z with especial interest in adjusting the default settings of the designers.
It is interesting to watch the better known traders do these adjustments over time. I also make note of when various platforms make changes in their defaults.
TA capability is periodically added to platforms as well; this is a measure of how contemporary they are. I feel as time passes the requirement to use several platforms in tandem will be lessened.
Another of the most powerful adjuncts of TA is to make the tools used dynamic; so, in any case, it is a good idea to use vectors rather than scalors.
I hope you forward the thread by using the items on the list as they relate to what you are doing. It is a great list and it can be applied in many places.
