Testing Many Different Trading Rules Until You Find One That

question 40

Multiple Choice

Testing many different trading rules until you find one that would have worked in the past is called ________.

• A) data mining
• B) perceived patterning
• C) pattern searching
• D) behavioral analysis

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Definitions:

Liquidity

The degree to which an asset or security can quickly be turned into cash without significantly affecting its market price.

Leverage

The ability to use something to maximum advantage, often referring to the strategic use of resources or capital.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Profitability

The financial metric used to gauge the degree to which a company or organization generates profit relative to its revenue and overall costs.