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Old 10-04-2005, 04:27 AM
crazy canuck crazy canuck is offline
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Join Date: Sep 2002
Location: Toronto canada
Posts: 657
Default Re: TA doesn\'t work?

To be honest, I couldn't understand the description of their test (I'm not a statistics major), so I can't comment on their proof.

Just take their word for it, they co-authored the Econometrics bible:

The Econometrics of Financial Markets

Also, from my experience RSI, stochastics, MA-s etc. have no predictive power (tho maybe some traders can generate signals from them using some fundamental info). I even implemented genetic programming that hasn't found anything (basically it evolves logical conditional statements combining various indicators and it is supposed to mimic the way traders think).

However, I found other systems that work and are much more complicated than simple TA. I wouldn't be surprised tho if these will be eliminated or their profitability will be greatly reduced in the next few years.
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