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The question of an edge

  #8 (permalink)

Birmingham UK
 
Trading Experience: Intermediate
Platform: NinjaTrader
Broker/Data: TST/Rithmic
Favorite Futures: YM/Gold
 
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Posts: 3,652 since Dec 2012
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rleplae View Post
There can be an 'edge', which by eye-balling the screen is very clear, why long, why short, why don't touch
once you want to quantify it (at least in classic rule-based system) and program it, it becomes very very
difficult as there is always a little 'but', which is evident to the human eye/brain, but when not programmed
it doesn't count...

Today half of my strategies are classic rule based, if / then and work OK
other half are machine learning, artificial intelligence based

I'm currently working on a small new project, and teach my kid (university student) the magic of machine
learning. as a example i hope to illustrate the result of a rules based system compared to a machine learning
system. But on the same concept... The goal of the exercise is : manual, trial/error/optimisation of features
and parameters, compared to automatic feature extraction... will be a good interesting exercise

More to follow this month...

Like the sound of the project, have a similar plan in incubation, good hunting.

However, regarding 'the edge' I'm afraid 90% is illusion caused by the magic of whole charts and hindsight, there is only 'the right-hand edge' when we're live...

Cheers

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