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Re: [amibroker] Re: Philosophical question --> Breakouts or Moving averages?



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Hi,

Hmm...  From a practical point of view, how would you apply this philosophical reflexion to trading?

I mean: if I want to trade hourly, should I concentrate on breakouts or moving averages in your opinion?

Thanks,

Louis

2008/3/21, brian_z111 <brian_z111@xxxxxxxxx>:

(Subjective) investigations into the 'human condition' have been
going on, in parallel with our search for objective truths, as long
as humanity has been around.

This body of information has been collected and preserved, by the
few, for the benefit of mankind (the many) and consitutes a SCIENCE
to its guardians, adherents and students.

>From that body of WISDOM two principles can be extracted that are
relevant to your comments:

holism is universally persistent (all things are made in the IMAGE of
the creator)

and,

flowing from that, we derive the principle of CORRESPONDENCE
(operating principles in one sphere, have their corresponding
principle in another)...

...but that is going to far OT.

Over to trading (OR how the above relates to trading):

Over the long term the bias of the (stock) market is a function of
the earnings performance of the component companies.

This is skewed by the behaviour of market participants, which
introduces randomness to the markets.

The shorter the timeframe the more dominant is 'randomness' (which of
course is not true randomness).

(If you are interested in the subject of organising principles and
holism Carl Jung's work on Psychological Archetypes is a wonderful
example of how the universal paradigms play out in the affairs of
wo/mankind).

brian_z *:-)



--- In amibroker@xxxxxxxxxxxxxxx, "Ronald Davis" <xokie7@xxx> wrote:
>
> I maintain the view that algorithms exist in nature, and that
people who develop algorighms are only discovering another one of
nature's secrets.
>
> When my son first showed me Amibroker several years ago, I looked
at charts with Stochastics, and RSI, and I became convinced that
mother nature has algorithms that can find the central core of all of
that volatility.
>
> I have yet to discover mother nature's algorighms, but my attempts
have led me to some conclusions.
>
> ----------------------------------------------------------
----------------------------------------------------------
------
>
> My results WERE BEST when I "AVERAGED THE LAST SEVERAL HUNDRED DAYS
OF ACTIVITY"
>
> and watched the LAST 9 DAYS>of the performance of this average of
hundreds of days.
>
> ----------------------------------------------------------
----------------------------------------------------------
------
>
> My results WERE LESS GOOD when I "AVERAGED OF LAST 9 DAYS OF
ACTIVITY"
>
> and watched the LAST 9 DAYS>of the performance of this average of
only 9 days.
>
> ----------------------------------------------------------
----------------------------------------------------------
-----
>
> Hope this helps someone. Ron D
>
> ----------------------------------------------------------
----------------------------
>
> ----- Original Message -----
> From: Louis Préfontaine
> To: amibroker@xxxxxxxxxxxxxxx
> Sent: Thursday, March 20, 2008 10:25 PM
> Subject: [amibroker] Philosophical question
>
>
> Hi group,
>
> I just began reading Howard Bandy's book (even though I did not
finish Aronson's book yet...), and a somehow philosophical question
came to my mind when he speaks about the market's inefficiency and
how we must take advantage of it. He talks both about moving
averages and breakout, and I was wondering which one of the two
techniques do you think is the more promising for such a system?
>
> I ask this because as far as subjective technical analysis is
concerned, I am more used with breakout techniques. But the real
inefficiency in breakout techniques comes from time, that is if one
can act quickly enough to make a profit from the sudden change in
price. But from my experience it seems to be more difficult with EOD
or hourly data. And it is less profitable for someone (like me) who
is using options, which tend to anticipate the change quicker than it
really happens.
>
> Moving averages techniques, on the other side, seems a bit
mystical to me, and maybe a bit too simple or too « easy ». I don't
know much about them...
>
> But anyway, my question is: which one of those two techniques do
you prefer, or do you use both for entering a trade, or shorting a
trade? What can be a good way to trade for someone (like me) who
wants to trade hourly data and can't always get the beginning of a
breakout?
>
> Thanks!
>
> Louis
>


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