Quantitative Analysis  |  MAR 2002

Determining Equity Growth Performance by John F. Ehlers and Mike Barna

Determining Equity Growth Performance by John F. Ehlers and Mike Barna What are the merits of using technical analysis trading systems? Evaluate them here. Technical analysts have the option of trading with either discretionary or systematic techniques. Discretionary traders tend to integrate life experience, knowledge, and technical indicators to make trading decisions. In this way they can, and have, made spectacular amounts of money. System traders, on the other hand, rely on trading signals automatically generated by computer programs. They don’t really need to know much about the market, or have much experience. Their confidence lies in the ability of their computerized systems. In this article we will show you how to determine what you can realistically expect from your trading system, rather than how to manipulate the statistics.

by John F. Ehlers and Mike Barna