Is training on technical indicators using machine learning strategy viable?

I have a machine learning algorithm that trains on some technical indicators

input: RSI, BB bands, stochastic, etc..

output: 1 (buy)/ 0 (sell) based on whether price closed higher than MA(5)

It has generated good results in the backtest but i believe it is fundamentally flawed. Can anyone explain to me why such a method is flawed?

Submitted October 27, 2020 at 12:20AM by geriophile
via https://ift.tt/31LLPW4

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s