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Naive Bayes classifier for signals of a set of indicators

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by , 09-10-2017 at 05:15 PM (1140 Views)
      
   
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Whether we like it or not, statistics plays a significant role in trading. Starting with the fundamental news full of figures and ending with trade reports or test reports, we cannot do away without statistical indicators. At the same time, the thesis on applicability of statistics in making trade decisions remains one of the most controversial topics. Is the market random, are the quotes stationary, is the probabilistic approach to their analysis applicable? This can be argued indefinitely. It is easy to find materials and discussions with various points of view, strictly scientific calculations and impressive charts on the Internet, as well as on the mql5.com site. However, traders are usually interested in the application aspect — how it all works in practice, in the trading terminal. This article is an attempt to demonstrate a pragmatic approach to the probabilistic model of making trading decisions using a set of technical indicators. Minimum of theory, maximum of practice.

The idea is to assess the potential of various indicators from the perspective of the probability theory and to test the ability of the indicator committee to increase the trading system's win rate percentage.
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