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Survey on log-normally distributed market-technical trend data

2016/05/11 by Kempen, René, Maier-Paape, Stanislaus
#FOS: Economics and business #Statistical Finance (q-fin.ST)

paper · doi:10.48550/arxiv.1605.03559

Abstract

In this survey, a short introduction in the recent discovery of log-normally distributed market-technical trend data will be given. The results of the statistical evaluation of typical market-technical trend variables will be presented. It will be shown that the log-normal assumption fits better to empirical trend data than to daily returns of stock prices. This enables to mathematically evaluate trading systems depending on such variables. In this manner, a basic approach to an anti cyclic trading system will be given as an example.

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