Developing Systems With a Rule-Based Approach by Jeffrey Owen Katz
ARTICLE SYNOPSIS ...Developing Systems With a Rule-Based Approach by Jeffrey Owen Katz
This month, Katz discusses a trading system he developed using a rule-based approach.
Previously, I explored the development of simple rule-based trading systems. Specifically, I looked at a rule-based system that revolved around a theory, the thrust-retracement hypothesis, about how the market functions. This time, I'll also explore rule-based trading systems, but rather than constructing a set of rules to reflect a hypothesis of market behavior, I will engage in "data mining" -- that is, empirically determining tradable rul...