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I am not sure if "trading with the wrong parameter" is correct, as you
stated. My belief is that each stk has its own trading characteristics.
Technical analyst in nothing more than measuring supply and demand of price.
And my premise is that the stk characteristic will remain in tack until it
changes.
Most complete trading sysyem have two major general characteristic. One is
money management (i.e when to get in, get out and double up) and two, a
history of win vs lost and max drawdowns. And the reason by most people do
not make "much money" on system trading is not having the trust when the
system turns against them.
OminTrader assumes that the stk will be generating the same charisteristic
and therefore the indicators can be trusted until the characteristics
changes. By being able to rerun the indicators against the stk on a short
term basis allows re-optimizations of the indicators to the new
characteristic of the stk.
This is not a guarrentee system. If it was, I would not be writing the
E-mail, but sunning somewhere in Europe counting my winnings. But,
combining with MetaStk to do additional analysis is not a bad way to predict
the next short turn move
regards
johnnie
-----Original Message-----
From: Jan Diederik <jddehaas@xxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Thursday, August 06, 1998 8:44 AM
Subject: RE: Omni Trader 3.5
>> -----Original Message-----
>> From: owner-metastock@xxxxxxxxxxxxx
>> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of John Scudiero
>> Sent: Thursday, August 06, 1998 1:14 AM
>> To: metastock@xxxxxxxxxxxxx
>> Subject: Re: Omni Trader 3.5
>>
>> OT is the complete opposite of a trading system methodology. It
>> optimizes
>> indicators against a data range you chose, the intent is that the price
>> trend of the immediate future is the same as the existing past, thereby
>> giving you excellent readings based on the indicators. And so
>> many days in the future, you re-run the indicator test to reoptimize
>them.
>
>In my opinion this means that you have been trading with the wrong
>parameters for your indicators. Afterwards you can say which parameter you
>should have taken. Pretty frustrating if you ask me ;-)
>
>Regards,
> Jan Diederik
>
>For the record: I never optimize; I usually take Fibonacci numbers.
>
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