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[amibroker] Re: Standard Deviation as an indicator



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jab,

I call myself a freelance trader, which basically means I don't have 
allegiance to any investment mindset, other than the ones that work.

I have been trading around 4-5 years and naturally enough came acros 
BB early on. Not being aware of the fact that you were active in the 
trading community I played around with BB's myself and reinvented the 
wheel on things like Hurst's differing envelopes (as shown in your 
site tutorial), the squeeze, difficulties with fake breakouts etc so 
it is interesting to me now to see that you addressed those issues in 
detail yourself.

The difficulties I had there put me off using BB's directly, although 
the underlying concept of dynamic bands/volatility etc influenced me 
greatly (I did succumb to the myth that tagging the band is 'the 
signal' and also I didn't feel comfortable that I had mastered the 
breakout from the squeeze).

I have used smoothed StDev bands as dynamic stops etc and privately I 
am pushing the boundaries on dynamic trading, including dynamic bands.

BTW my area of speciality is in system evaluation,specifically root 
cause evaluation, the propogation of variance (error) and variance as 
risk etc (I found that Pardo,and those who followed him, left plenty 
of gaps in our knowledge, in that area).

Back to your efforts.

I like your work and that it is focused on dynamic, adaptive 
techniques and that you believe we should "let the market set the 
bandwidth (indicator)". 

Plenty of traders have come unstuck trying to force their structured 
theories onto a dynamic market.

Now that I see that you have explained your methods in more depth I 
will play catch-up.

Since "Bollinger On Bollinger Bands" was written in 2001 is it still 
the best place to start to get an understanding of your core ideas?

> I think that the most interesting work involving %b is in the area 
>of
> machine-based pattern recognition. %b gives you the ability to
> rigorously define patterns and test them for effectiveness.

Do you discuss auto-pattern recognition in your book or have you 
published on that topic anywhere?

Congratulations on a great contribution to TA.

I hope there is more to come.

brian_z 



--- In amibroker@xxxxxxxxxxxxxxx, "John Bollinger" <BBands@xxx> wrote:
>
> --- In amibroker@xxxxxxxxxxxxxxx, "brian_z111" <brian_z111@> wrote:
> >
> > Hello John,
> > 
> > Thanks for that.
> > 
> > Simple but effective.
> > If you don't mind me saying, I think I prefer %b to BB themselves.
> > 
> > I see you include the equation in your tutorial section.
> > 
> > http://www.bollingerbands.com/services/bb/?page=5
> > 
> > 
> > Any tips on how to trade %b?
> > 
> > BB (also known as brian_z)
> 
> I think that the most interesting work involving %b is in the area 
of
> machine-based pattern recognition. %b gives you the ability to
> rigorously define patterns and test them for effectiveness.
> 
> Good trading,
> 
>     jab
> www.bbands.com
>



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