Mechanical Models

Strategy Development – A History of Failure
It’s an unfortunate reality that the field of technical analysis is better known for its failures than its successes. With over 90% of active traders losing it paints an unflattering picture.

Its landscape is littered with more failed methodologies and trading strategies then you can hope to count. Approaches that only ever looked good on a few well-chosen charts. Curve fitted and data mined strategies with too numerous and too overly optimised variables. Methodologies without any anchored reasoning. Techniques absent of any shred of evidence they had ever worked in the past, let alone hope to work in the future. Failure wherever you look.

Despite the marketing hype it’s rare to find methodologies that survive past their release date. Good, out-of-sample, robust performance is a scarce commodity in the world of trading.  Unfortunately, many traders believe the answers are found in complexity and shun the idea of simplicity, to the detriment of both their wallets and souls.

Although my models are not perfect, they do have a tradeable edge, and as you’ll see they do have plenty of positive out-of-sample performance past their release dates, a very rare commodity in the field of strategy development.

The simple mechanical models I make available off my web site include;

Each model attempts to capture a particular part of market struture.

Please refer to each model’s individual page opposite to learn more.