3 ms·
Since most markets trend for long periods of time, this winds up being a better strategy than you might imagine. "Buy high, sell low" also isn't quite an accura
by AndrewBissell 9y ago
Since most markets trend for long periods of time, this winds up being a better strategy than you might imagine. "Buy high, sell low" also isn't quite an accurate description, because moving average crosses in strongly trending markets happen at the beginning of the move, rather than the end.
No one regrets buying AAPL high in 2010, or selling LEH low in early 2008.
- Dolores12 9y ago>No one regrets buying AAPL high in 2010, or selling LEH low in early 2008. This is clearly survivorship bias.
- matt4077 9y agoI just tried that momentum theory on the bitcoin closing data someone posted in a sibling comment. I get 715 days of a trend continuing (down->down or up->up), and 739 days of the "trend" reversing: down->up OR up->down. That pretty much points at a random walk. "Momentum", and any other patterns people see, are imagined.