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Thanks Steve,
I'll study this.
I'm very familiar with your site, I've been learning from it for
the last couple of years ;)
Jeff
Steve Karnish wrote:
>
>Jeff,
>
>Chande has the finest indicators (my humble, subjective opinion) I have ever
>"eyeballed". Unfortunately, I have never read or seen anything that would
>suggest that Chande knows how to apply "rules" to his fine work. I'm sure
>he uses them well, but I can find nothing that hints at his approach.
>
>The Forecast Oscillator can be a real gem. I like to use a 13 period FO.
>Typically, stocks that fluctuate more than 10% from the Forecast Oscillator
>seem to perform the best under testing. A simple optimization would look
>like:
>
>Enter Long:
>Cross(opt1,ForecastOsc(CLOSE,opt3))
>
>Close Long:
>Cross(ForecastOsc(CLOSE,opt3),opt2)
>
>I like to use 13 as a default for opt3 (or you can test). opt1 is the
>trigger level to trigger a long trade and opt2 triggers the sell to offset
>the position. If you are testing commodities or the Q's, just change the
>"Close Long" to Enter Short. If I know a stock ranges up to 15% from the
>linear regression formed by the Forecast Oscillator, I will test for points
>between 1 and 15, stepping up a point (1) and -1 to -15. Because of the way
>the formula is written, you must change the optimization levels for each
>test. Some stocks don't trade beyond a percent or two of their price.
>Testing whole numbers above "one" wouldn't do you any good (under those
>circumstances).
>
>Attached is a chart of ERTS (I trade the stock publicly, at my site, with
>different rules), showing the FO13 and triggers of +10/-10 (I only use
>symmetrical triggers). During the last two years, it has triggered 11
>winners and one loser.
>
>Anyway, this is just one way to use it.
>
>Take care,
>
>Steve
>
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