Given ANY in- or out-of-sample time series, including purely random, synthetic data, anyone can generate (inflate) ANY Sharpe Ratio by repeatedly applying different trading or investment strategies to the same time series sample!
By definition, purely random data has no discernible structure. Consequently, no method can exist to predict such a sequence - I.e.,...
A price guess has 33% to be correct because the price has only three directions. The price of a security may trade higher, may trade in a narrow range, or trade lower.
Thank you for reading!
Greenfield
Disclosure: I am not a financial advisor. This is not a recommendation, not a representation, and not a solicitation. You should do your...
