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kut2k2,
Just visited Jurik's site. Appears there have been a number of
changes lately. What I remembered was primarily the JMA.
As to your comment "Very simple tools seldom work consistently in an
ever-changing market", I disagree. Simple tools will work
consistently and over a wide variety of market conditions if you know
what you are looking at. You also mention "the whole point of
adaptive indicators is to account at least partially for market
changes". My question is this, how are you going to account for those
changes? Typically AMA's use simple tools such as a RSI or a Stoch to
adjust to market conditions. Some will tie to volatility or even
volume but in the end we're still talking about simple tools as the
basis for adapting.
As far as Kaufman's AMA, I agree.
As to your idea for an AMA, it certainly sounds like a good idea but
again what do you plan to tie the changing market conditions to? I
tend to look at market conditions in terms of timeframes... basically
three. I also look at several indicators not just one. I want to know
how prices are reacting to volume. Am I seeing a gain in volume and
momentum? In my case a truly adaptive indicator would need to adjust
to more than one condition. The best way that I know of to accomplish
this is by use of a binary. Based on the binary score it becomes
relatively simple to use an adaptable indicator. If my binary score
is small then my adaptive is quick, if the binary score is high then
my adaptive would be slow. I really don't need to worry about the 20
variable limit. There are always ways to overcome Metastocks
limitations.
As far as DLL's, they can indeed be used to auto adjust lookback
periods. The ones that I have used will allow the indicator to use
different lookback periods based on the varying parameters that I
desire. This is not a canned AMA. I can use the DLL on any indicator.
Finally, you mentioned that you have an AMA that's better than
anything in the public domain but you need to make it dynamic in
lookback in order for it to reach maximum power. I don't understand.
How can it be adaptive and not dynamic? Can you explain this?
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, kut2k2 <no_reply@xxxx> wrote:
> --- In equismetastock@xxxxxxxxxxxxxxx, pumrysh <no_reply@xxxx>
wrote:
>
> Very simple tools seldom work consistently in an ever-changing
market.
> The whole point of adaptive indicators is to account at least
> partially for market changes. That's their potential for enhancing
a
> trading system.
>
> A lot of people completely misunderstand what the power of, say, an
> adaptive moving average (AMA) is. If someone uses it as a crossover
> basis for raw price, that is exactly the wrong usage. But if you
> replace a fastEMA/slowEMA crossover system with an AMA/slowEMA
> crossover system, you almost certainly will have a faster system
with
> no tangible increase in whipsaws, as a rule. It all depends on the
> quality of the AMA (big hint: Kaufman's is great as a learning
tool,
> lousy as an actual trading tool).
>
> What I am currently trying to achieve is a super-adaptive MA: an
AMA
> with a self-adjusting lookback period. That's why MS's lack of
dynamic
> time periods, or even a looping option, is such a major limitation.
>
> I thought your "adaptive DLL" was a special tool for auto-adjusting
> lookbacks but it sounds like it's just a canned AMA. I already have
an
> AMA that's better than anything in the public domain (I guess that
> makes it "proprietary" <g>) but I need to make it dynamic in
lookback
> for it to reach maximum power. Thanks for your response.
>
> Good trading,
> kut2k2
>
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