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  • Digg it UP - FOREX Day Trading - The Dangers of Curve Fitting

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    past data and any track record in day trading is curve fitted.

    Why?

    Day trading by its

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    In Forex day trading you see many systems that have fantastic track records in back testing, yet they can never match this performance in real time and the trader wipes out his equity.

    The reason for this is the concept of curve fitting - if you don’t understand its significance you will lose.

    Many traders buy hypothetical track records, or devise their own by running their signals over past data and any track record in day trading is curve fitted.

    Why?

    Day trading by its v

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    y can never match this performance in real time and the trader wipes out his equity.

    The reason for this is the concept of curve fitting - if you don’t understand its significance you will lose.

    Many traders buy hypothetical track records, or devise their own by running their signals over past data and any track record in day trading is curve fitted.

    Why?

    Day trading by its

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    for this is the concept of curve fitting - if you don’t understand its significance you will lose.

    Many traders buy hypothetical track records, or devise their own by running their signals over past data and any track record in day trading is curve fitted.

    Why?

    Day trading by its

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    Many traders buy hypothetical track records, or devise their own by running their signals over past data and any track record in day trading is curve fitted.

    Why?

    Day trading by its

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    past data and any track record in day trading is curve fitted.

    Why?

    Day trading by its very nature doesn’t work.

    You never get a real time track record of profits, so any track record has to be curve fitted to make a profit.

    So what is curve fitting?

    It means fitting the trading signals to the data ( you can of course do this on past data as you know the closing prices ) and making sure that the track record is profitable.

    It’s very similar to shooting at a bar

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