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Thank you, Tomasz, for the detailed and clear explanation. I've been using
it properly. Your email before this made me think maybe I wasn't.
AV
----- Original Message -----
From: "Tomasz Janeczko" <amibroker@xxxxxx>
To: <amibroker@xxxxxxxxxxxxxxx>
Sent: Sunday, June 20, 2004 8:40 PM
Subject: Re: [amibroker] Choosing the right mode
> Al,
>
> I really don't know why this pretty basic idea is so difficult to explain.
> Just for simplicity I skipped in my previous e-mail NOT the ability of
choosing
> trades in regular mode based on ranking. I did not want to present all
flavours
> for simplicity only. Once again for complete discussion please go to
amibroker-beta group.
> I will address your concerns here once and only once again below:
>
> ----- Original Message -----
> From: "Al Venosa" <advenosa@xxxxxxxxxxxx>
>
>
> > But TJ, you just confused me, which with me is always easy to do. :-))
When
> > you are in regular portfolio mode and you are trading, say, a market
timing
> > system where you buy x no. of stocks at the same time, when you get a
buy
> > signal, you want to chose the x-highest ranked stocks based on whatever
> > criterion/criteria you decide to rank your stocks by. You certainly
don't
> > want to choose the x stocks at the top of the alphabetical list.
>
> The KEY word is "WHEN" in your:
> "buy x no. of stocks at the same time, when you get a buy signal"
>
> so you are using regular mode and it is OK.
>
> Regular mode of course allows you to pick trades with highest score
> but this is "extra" feature. And it picks the TRADES. So in regular mode,
> first on all symbols buys and sells are evaluated and matched
> to give TRADE candidates. Then if you don't have sufficient funds
> or you don't allow as many open positions as there are candidate trades
> then TOP-x trades are picked according to score.
> But this happens AFTER knowing ENTRY and EXIT point.
>
> > In other
> > words, you are buying when something happens, and your system is
> > signal-based, yet you want to buy the highest ranked stocks, too.
> Of course it is signal-based. But you don't buy highest ranked stocks in
fact.
> You buy only THOSE highest ranked stocks THAT HAD ENTRY SIGNAL
> at given time. This is fundamentally different.
> In rotational mode there are NO entry/exit signals.
>
> In regular mode there ARE entry/exit signals.
>
> In rotational mode the score decides not only WHAT you purchase
> but also WHEN you trade.
>
> In regular mode the score does NOT decide WHEN you trade.
> And this is the difference.
>
> > So, you do
> > NOT want to use a rotational system; you want to use a signal-based
system
> > that also ranks stocks. According to your message below, what I describe
> > above seems to be a hybrid of regular mode and rotational mode.
> Not really. Your system is of course signal based and it just uses score
> to pick up best trades. Score in your case has no impact on timing.
>
> >So, the
> > buy/sell times DO depend on signals, not ranking.
> Exactly. This is regular mode.
>
> >Ranking is just a
> > secondary but important part of market timing signal-based type of
systems.
> No, ranking in regular mode is not part of market timing. Ranking in
regular mode is just the way to pick
> best trades. In regular mode TIMING is governed only by signals.
> Ranking in regular mode is just a secondary "flavour" that allows you to
> pick the best trades, it does NOT affect the timing (i.e. WHEN you enter
and WHEN you exit the trade).
> Ranking in regular mode just qualifies potential trade candidate to be
counted in or not.
> If there are too many candidates some may be just ommitted (because of
small rank).
> But no matter if rank is high or low it does not move entry/exit dates.
>
>
> Best regards,
> Tomasz Janeczko
> amibroker.com
>
> > ----- Original Message -----
> > From: "Tomasz Janeczko" <amibroker@xxxxxx>
> > To: <amibroker@xxxxxxxxxxxxxxx>
> > Sent: Sunday, June 20, 2004 8:06 PM
> > Subject: [amibroker] Choosing the right mode
> >
> >
> > > Hello,
> > >
> > > I have seen on several occassions sometimes funny attempts to code
system
> > in wrong mode.
> > > It just adds unnecessary problems therefore choosing the right mode
> > (regular vs rotational) is important.
> > > It is easy to.
> > >
> > > When you describe your system using words like "buy WHEN something
> > happens, sell WHEN some other thing happens"
> > > it means that your system is signal-based (i.e. buys/sells are based
on
> > signals occuring on condition that happens
> > > in certain points of time) and you should use regular mode.
> > >
> > > When, on the other hand, you describe your system using words "buy
(sell)
> > TOP/BOTTOM N-stocks"
> > > then your system is rotational (i.e. based on some kind of ranking,
> > buying/selling securities as they change their relative
> > > rank to each other - buy/sell times do NOT depend on time but on
ranking)
> > >
> > > Best regards,
> > > Tomasz Janeczko
> > > amibroker.com
> > >
> > >
> > >
> > > Check AmiBroker web page at:
> > > http://www.amibroker.com/
> > >
> > > Check group FAQ at:
> > http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> > > Yahoo! Groups Links
> > >
> > >
> > >
> > >
> > >
> >
> >
> > ---
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> >
> >
> >
> >
> > Check AmiBroker web page at:
> > http://www.amibroker.com/
> >
> > Check group FAQ at:
http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> > Yahoo! Groups Links
> >
> >
> >
> >
> >
> >
>
>
>
> Check AmiBroker web page at:
> http://www.amibroker.com/
>
> Check group FAQ at:
http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> Yahoo! Groups Links
>
>
>
>
>
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