kimo'sabby
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You can get "trends" in random or non-random data* because they are only identified after they have occurred. If you don't subscribe to the idea that "edges", as I define them, exist, then you can still trade a "trend". But your results are exclusively down to chance (not that there is anything explicitly wrong with that). You could equally trade a mean reverting strategy with the same consequences.
But if you think that there is an edge in trends (for example that they occur more often than you would expect from random data, or there are events that are a precursor to a trend developing), you might like to know how much your exploitation of it contributed to your P&L, and how much was down to luck.
* this is a bit ambiguous, but for the sake of argument we'll run with it.
Yeh. Everything amounts to equal, minus costs.
Diversity, multiple markets, kinda boils down to the same thing.
Outliers? Please, dont tell me i've been reading books about jammy barstewards?