Modeling The Markets
with Nelson Freeburg

Nelson Freeburg, editor and publisher of market research newsletter Formula Research, has focused his energies on the development of systematic approaches to participating in the stock, bond and futures markets. What are the key issues and steps that anyone should take to designing trading models? STOCKS & COMMODITIES Editor Thom Hartle spoke with Freeburg on July 19, 1996, about such subjects as parameter sensitivity, environmental conditions and some of Freeburg's favorite models.

" I never could claim that I was a very good technical trader using conventional chart patterns. This absence of positive results in my own trading, combined with my academic background in quantitative modeling, led me, finally, in the direction of system development."
-- Nelson Freeburg

"I read everything I could on technical analysis, starting with Edwards and Magee's Technical Analysis of Stock Trends, which I essentially memorized, and all of the other well-known charting books. I read Joseph Granville's work, and the classics, and all the people who wrote about Dow theory. I even read Charles Henry Dow's editorials from The Wall Street Journal, the ones originally published at the beginning of the century. Yet, as I expanded my trading horizons beyond gold and into stocks and options, I found that some of the techniques that I had learned about in those textbooks really didn't work in practice, at least for me."

Excerpted from an article originally published in the October 1996 issue of Technical Analysis of STOCKS & COMMODITIES magazine. 
© Copyright 1996, Technical Analysis, Inc. All rights reserved.

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