BuildAlpha

Basic video explaining and testing Relative Strength Index (RSI) on some popular stocks such as: Apple, Google, Nvidia, Boeing, Alibaba, Tesla, Amazon and more...

First, let’s talk about overfitting and what it is. I will simply define it as fitting a function or model to data so well that the function or model is not generalizable and cannot/will not work on another data set. In trading terms, it is designing a strategy that trades historical data so well that it will surely fail on new data . Build Alpha :  The first and most obvious test to prevent curve fitting is out of sample testing. In other posts I’ve described this, but in short, it is simply withholding a portion of your data to “validate” the strategy. For example, you have 10 years worth of data and you designate the first or last 30% to be out of sample. You build your model on the remaining seven years of data and then validate it on the withheld 30% or out of sample data. However, and for various reasons, this might not be enough to prevent against curve fitting. There are two parts to the underlying data: the signal and the noise. It is often said that when something i...

Are you searching for reliable trading software which can help you build and test robust trading strategies for financial markets? You do not have to look anywhere else. Build Alpha is your one-stop destination for achieving your trading goals with its expert tools and capabilities. It has two interrelated skills which other trading software cannot offer you. That is why it is the first choice of all traders, beginning traders and seasoned professionals in the business of trading. First, the ability to easily create trading strategies with no programming. Second, the ability to test these strategies with advanced methods not seen anywhere else. So yes, not only will it guide the new traders to start their trading portfolio, but it also guides the professional traders who already know how to trade in distinct market conditions. All traders spend lots of time developing strategies. Build Alpha comes into the picture, especially in the long run, because as markets change with increa...