Testing the Framework

Chapter 18 said the ratio principle is falsifiable and should be held to that standard by anyone who uses it. This chapter says how. It is the last chapter because it is the one that makes the others accountable: a framework a reader has tested on their own markets is theirs, and one they have only read about is the author’s.

The method here needs no programming, though it can be automated by anyone who wants to. A spreadsheet, a chart, and patience are enough.

What There Is to Test

The ladder makes claims that are specific enough to count. Each level carries a rule, and each rule can be stated as after this event, that outcome is more likely than otherwise. Six of them cover most of the framework: