What does the market follow? Is there an implicit nature?

 

Lately I've been thinking: a trader's journey often starts by trying to fit their strategies into the market. When the market doesn't follow their expectations, frustration follows. I suspect there's something larger—something we don't fully grasp—that is always there ruling.

That's where the strategy tester comes in. You have an idea or a pattern, and the tester (real market conditions) molds it into what the market actually is.

 
Osmar Sandoval Espinosa:

What does the market follow?

Nothing... or everything all at once. Either way, it's tough to discern.

Osmar Sandoval Espinosa:

Is there an implicit nature?

No... or yes─total chaos.

Osmar Sandoval Espinosa:
That's where the strategy tester comes in. You have an idea or a pattern, and the tester (real market conditions) molds it into what the market actually is.

I mostly agree with that, but I don't spend much time trying to define what the market actually is. To say that the Tester can mold your idea to the market is a bit of a stretch. I'm satisfied to accept that the Tester and I have identified an intermittently recurring pattern in a random data set─which should actually be impossible.

Fun fact: Choosing between math versus opinion is known as the Trader's Paradox.