Monday checkout: the power of the model

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Friday evening the software has produced the usual forecast for Monday (yesterday): here you see just the first two bars into the future , plus the actual market data for yesterday (the white line  + close dot).  Can you see the power of the model?

spx-da-am-20160912-221056-f713faca-d7f6-4bff-b671-5710fa73a689-3500-24

As it often happens, especially with fast moving bars, the future has entered slightly faster that what was forecasted.

You may think: he was lucky! Sorry, there is no he, just number crunching, big data and code at work. No human opinion is involved , so no he and no lucky.

Is the model always correct? no, of course. Sometimes it gets confused, the view gets misted or jumps at bifurcations – the market is not an easy beast and you cannot put yourself against it.

This is what I mean by know in advance. 🙂

 

 

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