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<DIV><FONT color=#000000 size=2>What does L2 cover?</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>Lionel Isssen</FONT></DIV>
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<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Daniel Martinez <<A
href="mailto:DanM@xxxxxxxx";>DanM@xxxxxxxx</A>><BR><B>To: </B>Equis:
Metastock Listserv Post <<A
href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx</A>><BR><B>Date:
</B>Thursday, October 29, 1998 5:03 PM<BR><B>Subject: </B>Elite Trader
NASDAQ Level II Course<BR><BR></DIV></FONT>MetaStock Users, <BR>Has anyone
taken the Elite Trader NASDAQ Level II Course? The course is from
25-50 computer screens and is supposed to show you how to use NASDAQ
L2. It costs $199. If you did, were you able to understand and
use L2 after taking the course. Did you start making profits?
<P><A
href="http://www.elitetrader.com/training.shtml";>http://www.elitetrader.com/training.shtml</A>
<P>Daniel. <BR> </P></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Thu Oct 29 21:52:20 1998
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From: "Jeff Cobb" <jcob@xxxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Subject: Re: Bull and Bear Fear System
Date: Thu, 29 Oct 1998 20:52:29 -0500
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Status: U
Hi Greg:
I went to my local Barnes and Noble store to find a book on Technical
Analysis that would tell me a little more about the DMI. This is Walt
Downs wrote to me about the DMI,
"The one I am referring to is the "Directional Movement
Index. Essentially it gauges the strength of an existing
trend. Therefore, If the DMI is strong (high) and price
has broken through a Fear level in favor of an existing
trend(on a retracement for example), the signal may be
good. In the case of a major reversal of a trend, the
weaker the DMI the better. i.e., if the DMI had been
growing progessively weaker as the market traded above
the fear levels, and then price broke sharply through
the levels on large volume, then a change in trend
may be indicated."
I found a book with a formula for DMI and I constructed it as an indicator
and found that is equivalent to "Directnl Movement DI" that is already
available in MS 6.5. This indicator was developed by Wilder and it is
recommended to be used with a 14 day period by him. The book I was looking
at suggested that many prefer to use this indicator at 10 days.
The way I interpret what I read in the book and what Walt says above is
that if the signal is high (it can vary between 0 and 100) then the trend
is strong and favors an entry in the direction of the trend. A weakening
signal indicates that the trend may be reversing.
I incorporated this signal into the B & B and found that it improved the
system results in most cases. I added this line into the Enter Long and
Enter Short categories --DX(10) > opt1. Because the DMI added an extra
condition that had to be met to reverse the position I added exit commands
which are just the previous Enter Short (w/o DMI) for Close Long and Enter
Long (w/o DMI) for close short. The book I think recommended a value of 25
as a signal point but I decided that it might be better to optimize that
value for individual stocks because for a very volatile stock 25 may not be
strong enough whereas for a more stable issue 25 may be overkill and 5 may
be sufficient (of course that's just my humble opinion). I've also been
experimenting with the "n" value in the system itself as the same logic
seems to make sense for the system as well.
I haven't been able to find a better method for exiting a trade than a
cross-over of a fear level. It seems from looking at the charts that you
could improve the exits, but everything I've tried reduces the performance
level of the system.
One thing I noticed about your system testing is you mentioned that you
used zero commission. Don't you think that may be a dangerous practice.
Of course, I pay only $7.95/trade or $15.90 round trip so one may argue
that at $0.0159/share in a 100 share trade that the commission is
negligible, but if you are getting alot of whipsaws in a system, having a
deduction for the commision is a good way to punish the system and give a
more realistic picture of performance.
Peace
Jeff
----------
> From: Greg Harris <gregharris@xxxxxxxxxxxxxxx>
> To: metastock <metastock-list@xxxxxxxxxxxxx>
> Subject: Re: Bull and Bear Fear System
> Date: Thursday, October 29, 1998 3:58 PM
>
> Jeff,
> I sent the message below 2 days ago and it didn't show up on the
> list, so I'll try again without the charts.
> Greg.
> -----Original Message-----
> From: Greg Harris <gregharris@xxxxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
> Date: Wednesday, October 28, 1998 11:28 AM
> Subject: Re: Bull and Bear Fear System
>
>
> >Jeff,
> > You are correct and your oscillator is much easier to read. I
was
> >attaching both M/A's and visually checking their values. {Ref( Mov(C, 5,
> >S ),-5)} and {Mov(C, 5, S )}
> > I have attached 2 gif's with the periods set at 28 to illustrate
> the
> >idea. As usual the exit is the hard part, any and all suggestion are
most
> >welcome.
> > If I could find out what DI+ and DI- are, then its quite
possible
> >that I still wouldn't know what he means.
> >Profitable Trading
> >Greg
> >P.S.: The scale on the right represents cents on the B&B chart and
points
> >(worth A$25) on the SPI chart.
> >
>
> >
> >
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