tag:blogger.com,1999:blog-3910008585223856206.post5602096117455170367..comments2010-01-10T04:36:55.144-08:00Milk Traderhttp://www.blogger.com/profile/15008769973064875700noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3910008585223856206.post-88909491221910138122010-01-10T04:36:55.144-08:002010-01-10T04:36:55.144-08:00Still creating the black box. Every time I feel I&#39;m getting close to trading it, it just keeps getting more complicated. I wouldn&#39;t do it any other way though. Though I didn&#39;t plan on learning how to program, I find it pushes you to think clearly about how you execute trades. The necessary statistics in the process also helps with thinking about odds, probabilities and expectation.<br /><br />The basics are accessible to any trader. Take some time to observe markets. Create a system from your idea. Learn how to code it in the language of your backtester (I use TradersStudio, but AmiBroker is another viable one amongst a list of decent ones). Learn how to evaluate your backtest results, then optimize the parameters and then test it again on out-sample data to see how well it holds up on &#39;new&#39; data. Then trade it. (I&#39;m almost there)<br /><br />You can get more fancy by trading several systems in conjunction and devising a neural network to filter out trades.<br /><br />Easy, no?Milk Traderhttp://www.blogger.com/profile/15008769973064875700noreply@blogger.comtag:blogger.com,1999:blog-3910008585223856206.post-8127249490049855092010-01-10T01:11:59.113-08:002010-01-10T01:11:59.113-08:00So what is your main purpose of this studying of the black box.. Are you creating one for yourself? Do you have one yet? How has this changed your perception of trading in general? What could you recommend to another trader with what you know now about black boxes? Thanks for the great posts.<br /><br />-StockfiendStockFiendhttp://www.blogger.com/profile/14194421699998027729noreply@blogger.com