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Well, Roy, I guess I should have said: Metastock was never designed
to directly allow you to determine thresholds directly.
Counting code could be written, but it hardly seems worth the effort
given the number of indicators and possible threshold combinations.
However, your email reminded me of one inexpensive product that I had
heard about that will take an indicator and determine its
effectiveness on the stocks being traded with it. It's called ICE and
it's going be released in the next month or two. It will be a
Metastock add-on, and will be sold by Equis.
It was created by Adaptick. John Slauson, the guy who wrote it, used
to work for Equis. He writes some pretty good stuff, and I expect
this one will be very good also--at least I hope so. I'm thinking ICE
may be able to help me fine tune some of my indicator thresholds.
I think I'll have an early release copy to test by next week. It has
72 indicators that it can test on any group of stocks you like. It
will determine which indicators work best for that group of stocks
and what the thresholds should be. The thresholds will vary slightly
on different groups of stocks.
In addition, it makes sure your indicators are not correlated, which
means not having more than one indicator measuring the same thing.
Indicators should be non-correlated. Most people have at least two or
three indicators that are too closely matched to be effective, when
used together.
After I have tested the product, I will write a review and post it.
It might be the solution to the indicator threshold problem.
I've heard Slauson is going to sell some early release copies at
about 1/3 of the Equis price so it's going to be very affordable--at
least for a little while.
Since I haven't used the product yet, that's about all I know about
it for now.
JO
--- In Metastockusers@xxxxxxxxxxxxxxx, "Roy Larsen" <rlarsen@xxxx>
wrote:
> JO
>
> > What you are talking about doing can't be done in Metastock
directly,
> > other than by observation.
>
> I'm tempted to take up the challenge but since I've already spent
some time
> looking at the same question on another forum I suspect you might
be right.
> It's fair to say though that some interesting discoveries (about
MetaStock)
> come from researching things that others have said can't be done.
>
> Thank you for your forthright and challenging comments. I really
appreciate
> your contributions.
>
> Roy
>
> > However, all the thresholds change over time. What works during
this
> > five year period might well be different for the next five year
> > period.
> >
> > Other issues include the number of false signals and whipsaws
you're
> > willing to tolerate, the speed of the indicator, the time frame
and
> > the market trend at the time. Many pros adjust their thresholds in
> > concert with current trading conditions. That takes lots of
> > experience.
> >
> > Almost all indicators have published thresholds. Many of them can
be
> > found in Technical Analysis from A to Z, so you don't have to
> > reinvent the wheel.
> >
> > Many thresholds are published in articles you can find on the web.
> > You can have three choices, trust the thersholds published, count
> > your events by hand, or spend a few thousand dollars and hours on
> > historical testing software.
> >
> > I just finished consulting on one fundamental applications package
> > that's the best I've seen. The basic model screening package is
$5000
> > a year. The historical testing software for it is an additional
$8000
> > a year. With it, you can back test any set of fundamental
variables
> > and how they have impacted stock prices during any time period
over
> > the last 50 to 75 years. Cool stuff! I was really close to buying
it
> > for my own use.
> >
> > The same kind of packages exist for TA.
> >
> > No matter what question you can think of, somebody has already
tested
> > it and researched it. If you can find that person, they'll tell
you
> > the answer to your question and save you a lot of time. No, I
don't
> > know the phone number of that person.
> >
> > JO
> >
> >
> >
> >
> >
> >
> > --- In Metastockusers@xxxxxxxxxxxxxxx, "Daniele Bevilacqua"
> > <daniele.bevilacqua@xxxx> wrote:
> > > Hi,
> > >
> > > in order to decide which threshold to use to validate an
indicator,
> > so far I have been eyeballing them on charts of a lengthy period
of
> > time and drawn very empirical (to say the least) conclusions. I am
> > wondering if there is a better way to do this - there must be, I
> > assume...
> > >
> > > What I would like to do, is find the percentage of time that the
> > indicator in question has been above (or below) a certain value
for a
> > specific security, eg since Jan 00 the RSI of YYY, Inc. has been
> > above 70 only 3.5% of the time.
> > >
> > > Even better, what is the value below which fall 95% (or 90%
etc.)
> > of the observations of the indicator in the time frame specified.
> > >
> > > Any suggestions?
> > >
> > > many thanks in advance
> > >
> > > Daniele
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > Metastockusers-unsubscribe@xxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
> >
> >
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