To develop a trading EDGE. You're looking for a market inefficiency. The model is not dependent on perfect data or even accurate data. The model is even tested with having random prices... by using a FILTER to see if it still holds.
Then, you're going to paper trade it. Then live trade it. Historical data can only give you a directional indicator... is your 'thesis' of market inefficiency... directionally accurate.
Comments
To develop a trading EDGE. You're looking for a market inefficiency. The model is not dependent on perfect data or even accurate data. The model is even tested with having random prices... by using a FILTER to see if it still holds.
Then, you're going to paper trade it. Then live trade it. Historical data can only give you a directional indicator... is your 'thesis' of market inefficiency... directionally accurate.