Given data that has been fit to a loess model, can you make reliable decisions on future trades given a good past fit? Has anyone here done so and can give an example of their use case?
I am yet to decide what data set to use.
I've been testing trading systems with lowess for a long time and have yet to find something that works. Lowess is a adaptive, so it will change with the addition of future bars ( it is the best fit taking into account past and future data points). If you plot a lowess on a chart, it is a perfect fit...not so much in real time.