Trading evidence vs experience
I was wondering where I could find actual evidence about trading strategies and claims. I have a background in medicine and where a lot of teachings used to be based on experience of older doctors there's a current trend towards so called evidence based medicine. Assumptions are tested in a scientifically sound manner (usually anyway). I'm sure most people have heard of randomized controlled clinical trials.
Does something similar exist for trading? For example, using breakouts as trading signal. According to some people this is a sound strategy, according to others it isn't due to an excess of false breakouts. My point is most books & commentary about trading is just a big pool of opinions. I can't imagine people have not tried to study these things in a more objective manner. Where do I find (or buy) more objective information?
Many thanks for any insight.
There's a LOT of literature on this subject out there, for example: http://www.uic.edu/classes/actg/actg516rtr/Readings/Financial-Economics… http://www.newyorkfed.org/research/staff_reports/sr4.pdf http://www.santafe.edu/media/workingpapers/91-01-006.pdf
Seek and ye shall find...
try Encyclopedia of Chart Patterns by Thomas Bulkowski. gives good evidence as to how successful different patterns are. Its a good reference book.
happy to see a thread like this
Thanks for the comments. So if I understand correctly there actually is quite some "objective" research around but you simply have to find it. There's no dedicated search engine for trading related literature from different sources (I'm thinking like PubMed for medicine), too bad.
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