146: Using indicators to predict stock movements with John MacLeod

In this episode of Better System Trader, host Andrew Swanscott interviews John MacLeod, a predictive modeling consultant, about applying predictive analytics to stock market trading. John explains the fundamentals of predictive modeling, its applications beyond finance, and how it's used in algorithmic trading. He details his approach to selecting predictors, emphasizing the importance of defining the prediction target and using diverse variables, and shares insights from analyzing 160 indicators, noting that indicator derivatives often outperform the indicators themselves. John also discusses the accuracy of predictions over different timeframes, the strengths and weaknesses of predictive modeling, and the tools he uses to create his models, offering advice for those interested in learning more about predictive analytics.