RE: [amibroker] Can this be done

["dbw451" <dbw451@xxxxxxxxxxx>]

Wow, that's a loaded question.  I'm not overly familiar with the RSI
indicator, so I can't offer specific suggestions about what you're trying to
do.  However, I can say that in general a system based on a single indicator
is only profitable when the market is conducive to that type of indicator.
For an oscillating indicator like the RSI, the market either needs to be
ranging or in a pull-back of a trend for the oscillator to be useful.
Trying to buy an oversold oscillator in a down trending market is a recipe
for disaster.   Identifying market conditions is the hardest part of
trading, IMHO.  You need to decide if your system is ranged based or trend
based and focus on identifying when the market is conducive to your system.
In other words, focus on what's going on in the left hand side of your
chart.

 

The golden rule of trading is "cut your losses short and let your profits
run".  If you think about it, the golden rule is primarily about where to
exit a trade.  If you put your focus on exits rather than entries, you'll be
much better off.  Good entries are important, however it's been proven that
a coin flip entry with tight stops and good profit management can be a
profitable system.  All that's needed to win this game is a positive
expectation system and the discipline to follow it.  Chapter 5 of Van K
Tharp's "Financial Freedom through Electronic Day Trading" is the best write
up I've read on the golden rule and system expectations.  The book also has
a great chapter on how to write a trading plan.  These two topics apply to
any type of trading (i.e. day, swing, etc.).

 

Best of luck in your trading education.

 

Regards,

 

David

 

  _____  

From: amibroker@xxxxxxxxxxxxxxx [mailto:amibroker@xxxxxxxxxxxxxxx] On Behalf
Of a a
Sent: 02/20/2007 2:52 AM
To: amibroker@xxxxxxxxxxxxxxx
Subject: RE: [amibroker] Can this be done

 

Hi David,

 

Thanks for your help. Do you have any suggestions on how the trading
strategy can be further improved upon.

 

Thanks.

dbw451 <dbw451@xxxxxxxxxxx> wrote:

AmiBroker can do this very well and you have a good backtesting strategy.
AB's optimization basically iterates a variable over a range of values.  For
each variable you want to optimize, you specify a starting, ending, and
increment value.  An AFL example would be:

dRSIvalue = Optimize("RSI value", 14, 4, 30, 1);

dRSI = RSI(dRSIvalue);

I don't think AI software is needed for what you want to do.

Regards,

David



  _____  


From: amibroker@xxxxxxxxxxxxxxx [mailto:amibroker@xxxxxxxxxxxxxxx] On Behalf
Of swptec
Sent: 02/19/2007 1:57 AM
To: amibroker@xxxxxxxxxxxxxxx
Subject: [amibroker] Can this be done

Hi,

I am new to Amibroker and don't know even if I am wording my question 
properly.

I want to optimize an indicator (say) like RSI for (say) a two year 
period from Jan 2003 to Jan 2005 and then do an out of sample backtest 
for the optimized indicator for the period Feb 2005 to Jan 2007.

Can such a thing be done?
Is it worth while trying such things?
Am I better of buy some Artificial Intelligence s/w for this purpose?

Thanks.

 

  

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