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in quantitative analysis, you try to figure out how to make decisions that are statistically likely to be profitable. generally, those that practice technical
by hogu 16y ago
in quantitative analysis, you try to figure out how to make decisions that are statistically likely to be profitable.
generally, those that practice technical analysis, look at charts and apply rules, however you don't have any statistical evidence that your ideas will be profitable.
one could properly backtest technical analysis based strategies, and if one did so properly, while controlling for overfitting, it would be as valid as most quantitative analysis.
- rjett 16y agoThat was sort of my point. If you're backtesting, then you are assuming that past prices do in fact have some sort of bearing on future prices. Besides, aren't there all sorts of problems with backtesting, one of which is survivor's bias?