Top Traders Unplugged cover image

SI231: The Perfect Fit for Trend Following ft. Richard Brennan

Top Traders Unplugged

00:00

Using Signals in Price Data to Extract Profits

Overfit systems and under fit systems are negative systems arising from the way we use price data to develop or train our models. This process can build into it this concept of overfitting or underfitting if we don't know what we're dealing with. So first to the signal, so when we analyze price data we're typically looking for some pattern in that data that positively correlates with the systems we use to extract profits from that signal. The particular pattern therefore is referred to as a signal. If we find our models negatively correlate with that price pattern in the data we find we have a loss.

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