This is a summary of links recently featured on Quantocracy as of Monday, 07/20/2026. To see our most recent links, visit the Quant Mashup. Read on readers!
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Is RSI Overbought a Sell Signal? We Tested 70/30 [The Refutation]The short version The RSI 70/30 rule (above 70 = overbought, sell; below 30 = oversold, buy) is the most repeated pattern in trading. We measured what price actually does after the signal, across six timeframes and four assets, and ran the traded version through six market regimes. It has no edge: forward travel is ~0.00% where the sample is real, it points the wrong way on the 4-hour chart, and
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Quantitativo weekly #3 [Quantitativo]An idea is nothing more nor less than a new combination of old elements. James Webb Young Implementing research papers can sometimes work, though a perfect replication often fails. Its never wasted effort, though: the ideas in the paper end up feeding new ideas and good conversations with other researchers. Heres the 3rd edition of the Quantitativo weekly, featuring papers that caught
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MACD: The Indicator Is a Passenger [The Refutation]The short version We wrote down four predictions before running a single test. Then we ran 360 measurements, tuned 320 variants, and put three complete systems through regime cross-validation. All four predictions held. What is actually inside the most famous momentum indicator in trading is not what its users think. The claim on trial MACD is on every platform, in every course, behind every