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Jeff,
Try applying this method to Nokia (8% band around the FO), Intel (7%),
Goldman Sachs (6%-see attachment). Don't forget to set system tester to -1
and open. This will initiate your trades on the opening of the following
day you trigger a signal.
Time travel into the next quarter and you will find the above issues being
traded as part of the 50-75 "single stock futures". Then, with a ~$135 in
profits (GS over the last two years), imagine how much fun it would be with
only 20% margin. I can't wait until the "series 7" idiots start to trade in
this arena.
Take care,
Steve
----- Original Message -----
From: Jeff Haferman <Jeff_Haferman@xxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Wednesday, January 23, 2002 8:50 AM
Subject: Re: Forecast Oscillator
>
> 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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