Discussing the article: "Price Movement: Mathematical Models and Technical Analysis"

[MetaQuotes]

Check out the new article: Price Movement: Mathematical Models and Technical Analysis.

Forecasting the movements of currency pairs is an important factor in trading success. This article explores various price movement models, analyzes their advantages and disadvantages, and explores their practical application in trading strategies. We will consider approaches that allow us to identify hidden patterns and improve the accuracy of forecasts.

Let's look at a trading strategy with these rules:

• when a new bar opens, the previously opened position is closed and a new one is opened;
• the direction of the opened position is determined randomly.

You might ask, "So, what's new here"? The new thing is that I have suddenly become a fan of the efficient-market hypothesis. If you also become a fan of this hypothesis, then you too will argue that predicting price movements is pointless. Prices move wherever and however they want. The market has some complete information, in accordance with which price changes occur. The trader does not have such information, and he can only hope that his decision will align with the market direction.

Let's try this strategy. The only configurable parameter is the initialization number of the random number generator. By changing this parameter, we can select the desired sequence of trades.

Author: Aleksej Poljakov