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Hi John,
I found a lot of Ehler's stuff there...but no Squelch...guess i'll have to
translate the TS code...
thanks anyway,
-john
----- Original Message -----
From: "John" <jea55129@xxxxxxxxx>
To: <amibroker@xxxxxxxxxxxxxxx>
Sent: Monday, December 15, 2003 3:42 AM
Subject: [amibroker] Re: An effective stopping methodology - 3BSMA and
powerSAR stops
> Hi John,
>
> Most of Ehler's Indicators have already been translated. The problem
> is finding them. If you go here and search under Squelch you will
> find what you are looking for. Look in year 2002 in the Ami section.
> <http://purebytes.com/archives/>
>
>
> Regards,
>
> John
>
> --- In amibroker@xxxxxxxxxxxxxxx, "john gibb" <jgibb1@xxxx> wrote:
> > Hi Pal,
> >
> > Can you share the AFL for the Ehler's Squelch function...i found the
> > TradeStation code here
> > http://trader.online.pl/ELZ/t-pb-Squelch_Indicator.html
> >
> > but hopefully you or someone else has converted it?
> >
> > BTW, have you used any other trend-or-not indicators like ADX/DMI?
> If so,
> > how did they compare to Squelch?
> >
> > thanks
> >
> > -john
> > ----- Original Message -----
> > From: "palsanand" <palsanand@xxxx>
> > To: <amibroker@xxxxxxxxxxxxxxx>
> > Sent: Saturday, December 13, 2003 5:11 PM
> > Subject: [amibroker] An effective stopping methodology - 3BSMA and
> powerSAR
> > stops
> >
> >
> > > Hi All,
> > >
> > > I have been searching for an effective stopping methodology for a
> > > very long time (since I began trading). I experimented with
> several,
> > > like all kinds of MA based stops, Gann's Rule of Eights stop, ATR
> > > based stops etc., I finally may have found a good one. It is
> based
> > > on the theory that there are essentially two types of markets:
> > > Trending and Trading Range. An instrument does not start a new
> trend
> > > immediately after ending the previous trend. It might go into a
> > > consolidation phase (Trading Range) before starting a new trend.
> The
> > > problem is to time this start of a new trend. Sometimes we have
> to
> > > wait for a long time indeed, thus if we enter the market too
> soon, we
> > > get whipsawed. To solve this problem, I came out with the
> > > following: Use a "mental stop" on day of entry at a reasonable
> > > distance from your entry point. Either an ATR based stop or a
> pivot
> > > point support/resistance based stop would suffice and exit only
> after
> > > 20 minutes has passed since your mental stop is exceeded and you
> are
> > > still losing. Use a 3BSMA stop during the initial stages (from
> next
> > > session after entry when the start of a new trend is still not yet
> > > confirmed) in accordance with the principle: Cut your losses
> short.
> > >
> > > Plot(MA(C,3),"MA3",colorWhite,1);
> > >
> > > Once, a new trend has started (confirmed by LinRegReveral
> Indicator
> > > and/or Zig-Zag trend indicator) and powerSAR has also confirmed
> the
> > > new trend, use the following stop in accordance with the
> principle:
> > > Let your profits run.
> > >
> > > Plot(scPowerSar(0.02,0.01,0.2),"PowerSAR",-16,8+16);
> > >
> > > (You need AB's dll's to use this function)
> > >
> > > SAR is the Stop and Reverse system developed by Welles Wilder.
> This
> > > system indicates where one should exit a trade and simultaneously
> > > reverse positions. It may also be coded to provide a stop for
> > > tomorrow's trading action. This function does not work with
> > > Equivolume chart.
> > >
> > > This provides a systematic way to set a stop order. The stops are
> > > changed daily and are adjusted to suit the market's conditions.
> It
> > > also keeps you constantly in the market. When one gets stopped
> out,
> > > you are also to initiate a trade in the opposite direction (In
> > > reality, you would already may have gotten a reversal signal and
> may
> > > be already trading it using a 3BSMA stop). This is generally
> used by
> > > futures and forex traders. Stock traders could of course short
> the
> > > stock however, one could also just buy stock and sell it without
> > > shorting it. Then when the next buy signal occurs, jump in again.
> > > This can be quite useful during trending markets however, it is
> > > practically useless in trendless conditions (I use Dr. John F.
> Ehlers
> > > Squelch functions to distinguish between trending and trading
> ranges)
> > > or when the price is consolidating. One can get whip-sawed and
> make
> > > several losing trades under these trendless conditions.
> > >
> > > This function is inherently a trend-following study. It increases
> > > the stop level each successive day until the 10th day that the
> market
> > > is still trending. At this point, it raises the stop level
> > > proportionally daily. This is due to the observed fact that 10-
> day
> > > runs are extremely rare. These long runs do occur however they
> only
> > > occur around 5% of the time. So this works magnificiently in
> trends
> > > and miserably in congestion or consolidation periods, but works
> well
> > > when combined with a 3BSMA stop during the initial stages (when
> the
> > > start of the new trend is not yet confirmed and you want a tight
> stop
> > > just in case the new trend did not start. Doesn't mean that you
> were
> > > wrong in trading it, just that sometimes it takes a long time for
> a
> > > new trend to develop and most people don't have the guts to buy
> when
> > > everybody else is selling and sell when everybody else is buying
> and
> > > that is one of the reason most traders lose and ofcourse they may
> > > also lack patience and also adequate capitalization, money-
> management
> > > (PositionSize, MaxOpenPos, MaxRisk, PositionScore etc.,))
> > >
> > > Any feedback appreciated. TIA.
> > >
> > > rgds, Pal
> > >
> > >
> > >
> > > Send BUG REPORTS to bugs@xxxx
> > > Send SUGGESTIONS to suggest@xxxx
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> > >
> > >
>
>
>
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