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One comment. Every
time we change the parameters of an indicator, explorer, or system we are curve
fitting. The questions arise when we have too many parameters and we try to
enter at the bottom and exit at the top. A few months back someone, it may
have been Theo, posted a 3d excel chart that showed the profit on the vertical
axis and parameters on the other 2 axese. The chart showed that by selecting the
parameters in the more profitable areas the probability of a profit was much
higher than trying to hit only the highest peak of
profitability
<FONT face=Arial
size=2>
<FONT face=Arial
size=2>Lionel
<FONT face=Tahoma
size=2>-----Original Message-----From: Ronald Eaton
[mailto:r.e.eaton@xxxxxxxxxxxxxxxx]Sent: Tuesday, October 01, 2002
3:30 AMTo: Metastockusers@xxxxxxxxxxxxxxxSubject: Re:
[Metastockusers] Digest Number 523 CHARLES FERRELL
A b
ook I mentioned previously by Pring, Breaking Out of the Black
Box, or something like that (it's close), has a section
devoted to moving averages, multiple moving averages, and methods to optimize
the moving average because of the personality and characteristics of the
stocks. The caveat is to not practice "curve fitting" and theeby make your
efforts worthless as a trading tool. Certainly worth the read and full of
other ideas as well concerning fabricating a mechanical or semi-mechanical
method by which to gauge your entry and exit points in bear, sideways, and bull
markets. He also covers the area of mixing indicators and oscillators so
as to not rely completely on one method/tool, but he also cautions about making
the black box too restrictive or to to construct a net that may not let enough
equities through the filter to allow you much of a chance of picking some stocks
that have more to offer than others.
Recommended Reading, or at least a review.
Ron E.
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Charlie
Ferrell
To: <A
title=Metastockusers@xxxxxxxxxxxxxxx
href="mailto:Metastockusers@xxxxxxxxxxxxxxx";>Metastockusers@xxxxxxxxxxxxxxx
Sent: Thursday, September 26, 2002 5:16
AM
Subject: Re: [Metastockusers] Digest
Number 523
What is the exact title of that book about multiple moving
averages?Thanks!To
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