2 ms·
The Most Popular Stock Indicator Performs Worse Than Flipping a Coin
- smabie 6y agoYou need to stop using price data, it's worthless. Price is non-stationary and non-normal. Look at log returns instead. But in general, I would advice you to take a more quantitative factor approach and stop looking at black magic technical indicators. A good introductory book on equity strategies is Active Portfolio Management by Grinold and Khan. I think reading that book will change your entire approach. Also, I would focus on market neutral factor strategies instead of your long only price analysis. Not to be harsh, but what you're doing makes very little sense. It's great that you're interested in quantitative finance, but you gotta learn the fundamentals before publishing blog posts.