nalin

Thank you Tams for answering, I was looking out for an answer in the context of deciding whether a trading idea is workable. The below is a reproduction of what DbPhoenix had mentioned in one of his posts. "The essential elements of the scientific method are traditionally described as follows: - Observe: Observe or read about a phenomenon. - Hypothesize: Wonder about your observations, and invent a hypothesis, (sometimes one's hypothesis is initially nothing more than a "guess"), which could explain the phenomenon or set of facts that you have observed. - Test a hypothesis - Predict: Use the logical consequences of your hypothesis to predict results (e.g., measurable experimental values) that must be found if the hypothesis is to be judged correct -- whether it is 'complete' or not. - Experiment: Perform experiments to test those predictions. (Note that great precision regarding a negative result might not be required to falsify a hypothesis.) - Conclude: Failure to see the predicted results from a well designed and implemented experiment is clear indication that the hypothesis is defective. Try again. Seeing the predicted results is an indication that the hypothesis is acceptable though not 'confirmation' or 'proof' of its correctness. - Evaluate: Search for other possible explanations of the result until you can propose no better account of your data. Formulate a new hypothesis which may better explain the experimental data and the original observation." I am not sure how to proceed furthur from 'test the hypothesize' stage. It is my understanding upto now that this stage involves statistics whereby I should be testing the trading idea. I am not sure how I should be testing it to determine it is workable or not. Thanks Nalin

Hello guys, I am not a serious trader yet, although I have been aware of this forum for some time.I am at the moment interested in statistics resources. I dont have much knowledge beyond the normal distribution curve which I learnt in school (that too vaguely).I would require some advise on how a trader should proceed to increase his knowledge in statistics for trading. I understand from the posts here the need for hypothesis and testing of a trading idea,but apart from a general idea I dont seem to be finding a detailed resources/software or books or to be read on the matter .

Thanks TipsyTzar Been hunting for it myself.