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RE: [amibroker] Trends, random series



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<FONT face=Arial color=#0000ff 
size=2>Interesting topic, thanks to all of you for sharing your thoughts. 

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Pseudo 
random series are fine for testing indicators but are useless to test trading 
systems. The reason is that the market is not random. This brings me to the 
point I want to make. What is missing <SPAN 
class=880411218-20062002>on this list, or 
at least I haven't seen it mentioned too often, is "basic research". 
AmiBroker is a splendid research tools and I expect it will eventuallybe 
sold in volume (or site licenses) to universities as a tool for students todo 
research projects - the students are going to have a ball and some will become 
millionaires, and not because they got their degree ;-)
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My 
approach is to research one little piece at a time, lots of basic stuff, I 
hardly ever use popular indicators, I chart each individual characteristic. 
When I have a bunch of "FACTS" I start putting them together to make a 
system. Like Steve K. said there are indeed may stocks that have unique 
patterns that for some weird reason may last for ten years or more. Itis 
great fun to discover price, volume, duration, stops, volatility, etc. 
relationships and when charting them see beautiful peaks that can not be argued 
with. 
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KISS 
is my approach. I posted a challenge sometime ago for anybody to name a TA 
book that was instrumental in the design of a profitable system. I always see 
quotes of books but never see anything about how they helped design 
a good system (100%+ann.). I have lots of books but they are gatheringdust 
just like some of the expensive programs I thought would help me design a 
system. The junk we buy when we start this hobby :-(
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Oh 
well,
take 
care and good luck,
<FONT face=Arial color=#0000ff 
size=2>Herman.
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