Key to Trading Profits – Matching the Probability Distribution of A Contract with An Appropriate Mechanical Trading Strategy

Whether one takes a qualitative or a quantitative approach, the techniques available are many and varied, and that complicates a systematic assessment of the usefulness of technical analysis. It comes as no wonder then, that empirical tests of specific trading rules and their attendant signals are often less than satisfactory tests of the efficiency of technical analysis in general, since traders typically employ not one but a range of technical indicators. Additionally, many traders also apply considerable market intuition to complement the insight gained from technical analysis, so there will always be an element of subjectivity with its application.