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Hi,
Just one comment to the AFL code - in fact this is a commentary
not a full trading system. It should be applied to a chart in
WEEKLY mode. It finds just buying/selling oportunities in weekly charts.
The difficulty in coding trading system using Mr. Elder's ideas is that
he uses the mixture of weekly & daily signals.
Best regards,
Tomasz Janeczko
===============
AmiBroker - the comprehensive share manager.
http://www.amibroker.com
----- Original Message -----
From: "Dr. S. Nathan Berger" <snberger@xxxx>
To: <amibroker@xxxxxxxxxxxxxxx>
Cc: <snberger@xxxx>
Sent: Friday, April 20, 2001 3:49 PM
Subject: [amibroker] A Great Trading System
> Sharing a Great System-
>
> In the spirit of trying to get others to share their codes with the
> Amibroker community, here is a program that has worked well for me. Since I
> know nothing about coding and programming, it was coded for me by Tomasz,
> based on the concepts of Dr. Alexander Elder.
>
> In Elder's system, he begins by analyzing WEEKLY data, using the slope of
> the MACD-Histogram to identify market tide. The slope is defined as the
> relationship between the latest two bars. When the slope is up, trade long;
> when slope is down, go short.
>
> In his system, a single uptick or downtick of the WEEKLY MACD-H indicates a
> change of trend. Of course, best buy signals result from upturns that occur
> below the centerline, but if they occur above the centerline, this is still
> a buy signal. Same is true for downturns above and below the centerline,
> which trigger sell signals. The formula is:
>
> /* Nate_Gurucommentary_3.afl */
> macdhist = macd( 12, 26 ) - signal( 12, 26, 9 );
>
> /* 13 week exponential moving average */
> ema13week = ema( close, 13 );
>
> /* calculate 1 week macdhistogram change */
> macdchange = macdhist - Ref( macdhist, -1 );
>
> /* calculate 1 week slope */
> emaslope = ema13week - Ref( ema13week, -1 );
>
> buy = emaslope > 0 AND macdchange >0;
> sell = emaslope < 0 AND macdchange < 0;
>
> WriteIF( buy, "Buying opportunity",
> WriteIF( sell, "Selling opportunity", "No valid signals" ) );
>
> buy = ExRem( buy, sell );
> sell = ExRem( sell, buy );
>
> Once you find a stock where the trend of the weekly MACD-H has changed, say
> up, then you turn to the DAILY chart for that stock and look for trades in
> the same (up) direction. I use a Stochastic to do this, and when the
> WEEKLY trend MACD-H is up, I take only buy signals from the DAILY oscillator.
>
> As Elder teaches, when you enter a trade, the purchase price is set 1 tick
> above the current day's high. In this way, on the next day, that is, the
> day your buy order will be executed, if the stock continues to move upward,
> you will be STOPPED IN; if the stock does not continue to move up, your buy
> price will not be hit and the order will not be filled.
>
> Whenever I enter a position, I ALWAYS place a stop loss. This can be
> determined in a number of ways, and I will be glad to explain what I use to
> any who are interested- but it is outside the point of this message.
>
> If I have taken a long position, I will stay with that position until the
> WEEKLY trend, using the above formula, reverses, or I have been stopped
> out. If trading more actively or aggressively, I would exit the position if
> the Stochastic turns down from above the 70% line.
>
> Elder's trading system is essentially buy on dips in uptrends, sell on
> rallies in downtrends. In 25 years of trading, it is the safest system I
> have found, and I am happy to share it with everyone.
>
> Hopefully, others of you will be inclined to share systems which work for
> you. I would ask that if you are willing to share, please post your
> formulas in a form that someone like me- with no programming skills- can
> cut and paste into Amibroker.
>
> Nate Berger
>
>
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
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