What kind of strategy would you call this?

pistolpt · May 13, 2012

Let me clarify, the .03 ranges were fake. The actual ranges are smaller in the middle and larger at the ends - a more normal distribution.

I chose not to have the actual ranges and numbers on the uploaded graphs to keep what I am doing more confidential. Thanks.

indicator777 · May 14, 2012

Quote from pistolpt:

Let me clarify, the .03 ranges were fake. The actual ranges are smaller in the middle and larger at the ends - a more normal distribution.

I chose not to have the actual ranges and numbers on the uploaded graphs to keep what I am doing more confidential. Thanks.

So you intensionally deceive people while asking their opinion about your deception. I will ask ET to ban you for good. You deserve it.

pistolpt · May 14, 2012

So you intensionally deceive people while asking their opinion about your deception. I will ask ET to ban you for good. You deserve it.

The numbers in question had less to do with what I was talking about & I wanted to keep the real ones to myself for proprietary reasons.

I was more focusing on the fact that there was an obvious pattern and wondered what you would call the trading strategy if you went long or short the security on a daily basis.

You misspelled "intentionally"

bwolinsky · May 14, 2012

Quote from indicator777:

So you intensionally deceive people while asking their opinion about your deception. I will ask ET to ban you for good. You deserve it.

Intentionally (sp) aside, the thread's op is trolling, and I dislike having to respond to artifical charts and graphs.

It's no wonder nobody could figure out any of this, and this thread was a waste of everybody's time.

pistolpt · May 14, 2012

Thanks to abattia for understanding the question I was asking and being helpful...

intradaybill · May 14, 2012

A failed strategy

pistolpt · May 14, 2012

Quote from intradaybill:

A failed strategy

hiyoooooo

ssrrkk · May 18, 2012

Quote from pistolpt:

I've enclosed a chart which holds one of the several keys to my investment strategy. This is based off of about 2,000 days of observations.
The prior day's value of a certain statistic is on the x-axis. The return of the security on the following day (day after statistic is taken) is on the y-axis.
Obviously one would go long the security when the statistic is <1 and short it when it is >1.

My question is - does this kind of strategy have a name? Has anyone else used data like this to decipher patterns?

Thanks.

Why are you plotting this using discrete bins? Why not just plot the indicator versus next day return, and tell us the correlation coefficient? Then do the same for 100 sets of sampled data points (monte carlo) and get an idea about the error bars on that estimate?