Evidence-Based Technical Analysis
by David R Aronson · first published 2006
75% recommend25% neutral
Why HN recommends it
Teaches statistical inference for trading rules, explaining sampling distributions accessibly. It serves as a strong beginner's introduction to testing whether technical indicators really work.
Summarised by Claude from recommending comments
Affiliate links. As an Amazon Associate I earn from qualifying purchases.
Mentions per year
What Hacker News says
Related books
2011–2021Options, futures, and other derivatives
Hull, John
Recommended by 10 · mentioned by 1010 recommend · 10 mention10 recommend · 1010 recommend
2011–2024Algorithmic trading & DMA
Barry Johnson
Recommended by 8 · mentioned by 118 recommend · 11 mention8 recommend · 118 recommend
2009–2021The Back of the Napkin
Dan Roam
Recommended by 6 · mentioned by 86 recommend · 8 mention6 recommend · 86 recommend
2009–2026Options, futures, & other derivatives
John C. Hull
Recommended by 25 · mentioned by 3525 recommend · 35 mention25 recommend · 3525 recommend
2010–2026Dynamic hedging
Nassim Nicholas Taleb
Recommended by 12 · mentioned by 2012 recommend · 20 mention12 recommend · 2012 recommend
2008–2025Trading and Exchanges
Larry Harris
Recommended by 50 · mentioned by 5950 recommend · 59 mention50 recommend · 5950 recommend
2009–2026Les Misérables
Victor Hugo
Recommended by 35 · mentioned by 9735 recommend · 97 mention35 recommend · 9735 recommend
2007–2026A Random Walk Down Wall Street
Burton Gordon Malkiel
Recommended by 127 · mentioned by 190127 recommend · 190 mention127 recommend · 190127 recommend
Books I would recommend for beginners: Evidence Based Technical Analysis: http://www.amazon.com/Evidence-Based-Technical-Analysis-Scie... Pairs Trading: http://www.amazon.com/Pairs-Trading-Quantitative-Methods-Ana... Quantitative Trading: http://www.amazon.com/Quantitative-Trading-Build-Algorithmic...…
on “Good books for hackers interested in quant finance?” ↗Evidence-Based Technical Analysis - David Aronson ; Chapters 4 and 5 give a very accessible explanation of statistical inference through the use of sampling distributions. It's an excellent book.
on “Ask HN: What is HN reading?” ↗…Developing & Backtesting Systematic Trading Strategies, Brian Peterson - Algorithmic Trading, Ernest P. Chan - Algorithmic Trading and DMA, Barry Johnson - Trading Systems, Emilio Tomasini & Urban Jaekle - Evidence-Based Technical Analysis, David R. Aronson - Machine Learning for Algorithmic Trading, Stefan Jansen
on “Show HN: I discovered a trading algorithm that returns ~24.85% annually” ↗Evidence-based Technical Analysis by David Aronson is a great intro.
on “Python For Finance: Algorithmic Trading” ↗…a precursor to the famous Black-Scholes model) of interest (Ed Thorpe is an incredibly interesting person in his own right). If you find yourself wanting to get into technical analysis, I'd recommend "Evidence-Based Technical Analysis" by David Arons (a spoiler: the evidence is not good). If you're interested in ML applied to trading, I keep seeing references to Advances in Financial Machine Learning (Marcos Lopez de Prado), although…
on “SIPC Says It Has Serious Concerns About Robinhood's New Product” ↗Evidence-Based Technical Analysis is a starting point (book), but iirc it was able to show most common indicators aren't able to reject the null hypothesis.
on “Ask HN: Those making $500/month on side projects in 2021 – Show and tell” ↗. Zen and the Art of Motorcycle Maintenance by Robert M. Pirsig . Programming Clojure . Little Schemer (re-reading) . Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals by David Aronson
on “What are you reading?” ↗The parts of it that are not nonsense are common sense. See 'Evidence Based Technical Analysis' by Aronson. Conclusion of the book: it doesn't work in a way you can make money from.
on “Tesla Is The New Bubble Stock” ↗Here: http://www.amazon.com/Evidence-Based-Technical-Analysis-Scie... Bottom line (but very controversial among any diverse group of investors): it doesn't work. I always try to steer people away from it if - it's one of those big choices in life (like choosing…
on “Show HN: Guess whether a stock will rise or fall - and get instant feedback” ↗