Better System Trader cover image

049: Linda Raschke on trading edges, modelling the markets, identifying market behavior, trade management and day trading techniques.

Better System Trader

00:00

The Importance of Filtering in a Model

You need to be very discriminating as to the model that you're developing and what you're trying to capture. So for example, if I'm just simply modeling what percent of the day's range occurs in the first hour, then it's not significant. And if I'm modeling some long term market timing system along the lines that Nelson did, then absolutely you need to include bull markets, bear markets, flat markets, noisy markets. But that little middle ground is very difficult to determine how you're going to include a filter in your system.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app