|
PureBytes Links
Trading Reference Links
|
--- In equismetastock@xxxxxxxxxxxxxxx, "superfragalist" <j3ttt@xxxx>
wrote:
> Well, here we are again having the zigzag debate. I thought I would
> share my thoughts--a bunch of them.
>
> At least this time, the people who responded to the zigzag
quesitons
> were respectful. For that, I thank you. We were all new at this
once
> before we entered the pits of hell without mommy.
>
> There's nothing worse than a self proclaimed "expert" who throws
out
> sarcastic comments every time someone does something with the
zigzag
> indicator, or something else that the "expert" can pounce on. Their
> comments are intended to embarrass or ridicule; however, there's
> usually a line attached about how "I'm just trying to help!" I feel
> sorry for the crippled egos that need to do that stuff.
>
> Here's my 2 cents on the zigzag. I use it sparingly in my trading.
> The fact that it is a dynamic indicator, meaning the last leg is
> subject to revision, does not mean that it doesn't work. The
dynamic
> nature of the zigzag depends on the percentage change in the swing
> point that you require before the indication becomes valid. The
lower
> the percentage the less revision their is in the last leg. However,
> the lower the percentage change you find acceptable means you're
> going to get more whipsawing and false signals. The degree of
> whipsawing depends on the volatility of the stock. If you applied
the
> zigzag to a junk bond mutual fund, it would work much better than
if
> you applied it to a Dow stock like Honeywell or SBC.
>
> There is also an issue regarding the time frame. For example, when
> trading on a five minute screen the zigzag settlement time based on
> the percentage of the swing chosen might fall within acceptable
> slippage limits to still make the trades profitable.
>
> If you only trade the DIA for example, you could calculate the
amount
> of slippage created by the dynamic leg of the zigzag for each time
> frame and swing percentage being used. The slippage would vary from
> stock to stock and from time frame to time frame, and it would, of
> course, vary between it's standard devs. I've used peak and trough
> functions sparingly and successfully, and I've measured the time
lag
> and slippage on what I trading. It was fine.
>
> Yes, I've read Spyros's articles and other people's commentary.
I've
> experimented with his validity code and found it to be useful in
some
> circumstances and not so useful in others. On short time frames, it
> gets in the way more than it helps.
>
> On an EOD basis, I don't use the zigzag in experts or for making
> trading decisions because I'm looking at various stocks with
> differing amounts of volatility. I can trust it on one stock, but
not
> on another. There are other indicators, that on an EOD basis, I
feel
> are better.
>
> I also won't use it in explorations or in backtesting. I don't do
> much backtesting because I've found it to be worthless for me with
> the exception that it gives reasonable relative comparisons. They
are
> only relative comparisons because every system I've ever put
together
> requires judgement--mine. I've never found a backtesting program
that
> could hard code in my judgement. I have to personally test every
> system I like to see if I can trade it--intellectually, emotionally
> and profitably. If it fails any of those tests, who cares how
pretty
> the backtest results were. The absolute test of a system is my
> ability to use it. I only care about the quality of my trading
> decisions. I don't care how smart other people think I am, or how
> close I can come to finding the "grail" or anything else. All I
want
> to do is make money, and I want to make it as simplistically as
> possible. In my experience, when you take my brain out of the
system,
> you take money out of my wallet.
>
> (Yeah, there are canned systems. FuturesTruth exists because of
them.
> But I've never found one I trusted as much as I trust me. That's
one
> of my flaws, I guess. If I'm going to sit in the cockpit but I
can't
> fly the plane, I'll just wait for a ride later.) Back to the zigzag.
>
> In addition, the zigzag's dynamic nature means it's going to screw
up
> every backtest and every exploration. There are simple explorations
> that will find every kind of stock situation known to man. I'm
amazed
> at how much crap I see in exploration programs--my opinion.
>
> I don't do much exploring either. I guess I must not be a good
> trader. I've gone months trading only one stock. What a screw up I
> am. That's not the conventional search 6900 stocks every night
method
> I see on the metastock boards every day. Oh, well. I like to count
my
> money while some people are up late into the night trying to figure
> out what stocks to trade--especially in a market like this!
>
> I'm not an expert on the zigzag. I've never read an article written
> by one or talked to an expert on the zigzag. I've met a few traders
> who know a lot about it, and some who even use it for different
> things, but I've never met anyone who's devoted enough of their
life
> to it to call themselves an expert. If they have devoted that much
> time to it, then they're not trading. They're writing books and
> giving seminars. If they're not trading, I'm not sure they're an
> expert on how to use the zigzag to trade--and make money, which is
> what this is suppose to be about.
>
> A few people on these boards read an article or two and then
proclaim
> their superior knowledge. Right! Impress me some more.
>
> That's my two cents.
>
> By the way, does any one have the code for an exploration that
finds
> stocks that are going to go up tomorrow around 10:00, but I only
want
> stocks that are going to go up by 0.965345 percent and that I can
> exit by 12:32. I have found the letter A to have bad karma so I
want
> to filter out all the stocks that start with an A or that sound
like
> they start with the letter A. I sure could use some help with that
> code, or I'm going to stuck with my one stock AGAIN.
>
> Oh, I don't want to forget my advice to the guy who asked the
> original question. If it's making you money, run it until its legs
> fall off. However, when the legs do come off, believe it. Denial is
> so so expensive!
>
> Jack
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for Your HP, Epson, Canon or Lexmark
Printer at Myinks.com. Free s/h on orders $50 or more to the US & Canada. http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/l.m7sD/LIdGAA/qnsNAA/BefplB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|