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Registered User
Joined: 10/7/2004
Posts: 12
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How are the backscans calculated in reference to Linear regression channels? I've run a couple scans and the numbers (returns) are WAY off. The question is are calculations done by ploting the regression channel
and begin the back test from "x" days back or are the calculations stated from the current day and plotted forward?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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What "Linear Regression Channels" Indicator? StockFinder doesn't have an Indicator in the Web Library by that name of which I am aware.
In any case, if it is a Linear Regression Line, you can't use it for backtesting, it has to be a "Moving" Linear Regression to be valid for use in backtesting (it needs to be a squiggly line that keeps going instead of a straight line that terminates).
-Bruce
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Registered User
Joined: 9/28/2005
Posts: 54
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Another way of looking at this is, the linear regression is the best line you can draw from the left side to the right side. The right side is not known yet when you are trading against the left side, so this would be a crystal ball error.
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