KELTNER CHANNEL - I
Edges in the market erode all the time. New technology and information will never stop flowing in the market and we have to evolve all the time. Traditional chart patterns have no statistical edge and it is very important to use tools that can be tested statistically. One of the most important and never-talked-about statistical parameters among popular gurus is the p-value which provides evidence about the randomness of the null hypothesis. If anyone gives you a "backtest" of a system, be sure to ask about the p-value of the hypothesis and not the accuracy of the system.
Since I am not fully equipped to conduct those tests myself, I had to rely on my trading educator Adam Grimes, who is a brilliant trader with proper statistical tests and this is just an interpretation of his work. Anyone interested in his statistical work can just comment below and I will be more than happy to help you out. I would have added those tests here itself, but I might get banned.
Since I am not fully equipped to conduct those tests myself, I had to rely on my trading educator Adam Grimes, who is a brilliant trader with proper statistical tests and this is just an interpretation of his work. Anyone interested in his statistical work can just comment below and I will be more than happy to help you out. I would have added those tests here itself, but I might get banned.
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