Comparing Three Indicators by J.R. Davis
ARTICLE SYNOPSIS ...Comparing Three Indicators by J.R. Davis
Three trend-following indicators swing charts, random walks and moving averages are compared as separate mechanical trading methods.
Although the markets that we trade are (arguably) fractal in nature and so not subject to close
approximation by linear systems, purely mechanical approaches do have advantages over more
individual, human approaches. Mechanical systems never have a bad day due to a head cold, for example,
nor do they wait for more evidence before entering or exiting a position. At the very least, mechanical
systems should provide useful ...