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Hi to all,
I am responding to the following:
-----Original Message-----
From: Rick Roegner <oiis@xxxxxxxxxx>
To: metastock-list@xxxxxxxxx <metastock-list@xxxxxxxxx>
Date: Monday, January 12, 1998 12:58 PM
Subject: Systems-indicators
>I've noticed that whenever I design & optimize a trading system (or the
>same for an indicator) in Metastock, that in various areas over the data
>history, the system or indicator does not work so well.
>
>Has anyone devised a method to adjust a system or indicator over the price
>history during these "weak" spots; let alone possibly into the future
price
>history?
I agree that it is difficult to built an indicator/system with enough
flexibility
to perform well over a large number of periods for most/all stocks .
I have adopted an alternative that works well for me.
I use a system of a combination of indicators
that is very predictive when the signal is given for a stock. However, it
does
not attempt to continuously predict price action of any particular stock.
Rather, I have carefully (I hope) selected a group of stocks that have
behaviors
for which my indicators are effective. I only trade when my indicators
signify a hit,
and then only for a limited number of periods. The advantage to this
method is
that my indicators due not have to continuously predict the behavior of any
one stock
for a significant number of periods, and due not have to predict future
price changes for all stocks.
I believe one successful technique is to limit a system to a predetermined
set of stocks for which the system is most effective and limit the duration
of the trades
to that time period for the system has proven successful. That is, the
system is
not "pushed" beyond that for which it has proven successful.
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