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JO,
What other vertical indicators does ICE use? I understand what
Volatility and Volume indicators are, but what is a Vertical
indicator? Can you give us the names of a few? Thanks.
DM
--- In Metastockusers@xxxxxxxxxxxxxxx, "manohohman" <kelols@xxxx>
wrote:
> Previously I had mentioned I had used ICE to finish the development
> of a trading system that I had been working on. I was looking for
> ways to incorporate into my present system a bit more information
on
> sizing trades. I also explained that ICE had saved me a lot of time
> in doing this, and that alone made it easily worth the price.
>
> I have another experience to share. Sometimes I'll trade only one
> security for days at a time. Maybe it's the Qs or SPYs, as an
> example. I will also decide the time frame based on market
> volatility.
>
> As I change time frames, or switch securities, the various
indicators
> in my system, while still working good, but are not optimal. I
> understand this, and it's obviously why I have more than one
> indicator in my system, as we all do.
>
> Today, I took a couple of the stocks I sometimes use for that style
> of trading and decided to see what ICE had to say about my
> indicators.
>
> What I got surprised me. On one of the securities, ICE told me r-
> squared was as a very profitable indicator. R-squared is a
> correlation coefficient, and can be difficult to trade with, but
ICE
> was telling me it showed the best performance across all 70
> indicators I had tested and was definitely the vertical leader by a
> wide margin.
>
> I fooled around with it on a chart and finally isolated the best R-
> squared coefficient for that stock in my particular time frame. R-
> squared is a measure of the correlation of stock price movement to
a
> linear trend over time.
>
> I usually use the ADX for my strength of trend information, and I
> didn't really want to put an R-squared indicator on my chart, so I
> wrote it as a highlight formula. (Very simple!). When I set it up
as
> a highlight, it was terrific at telling me when a trend was strong--
-
> in other words, when to put more into the trade. In fact, it turned
> out to be much better than the ADX for that stock in that time
frame.
> It worked just like ICE implied it should. I would have never
guessed
> or even tested R-squared on this security, much less suspected it
> would out perform the ADX.
>
> Then I decided to see how it faired on one of the other ETFs I was
> trading in the same time frame. It was really poor. However, ICE
told
> me MACD was the best. But when I optimized it, I got a weird number
> for the opt variable. I got a 1. If you open MACD with a 1 for the
> signal time periods, you get a line that oscillates around 0. As it
> turns out, for this security on my particular time frame, the
> crossing of 0 by the MACD gave great signals for trend changes.
>
> Again I programmed it as a highlight indicator. I've programmed and
> tested around a hundred highlight formulas trying to find the best
> trend indicator that I could. Basically, I had settled on an Aroon
> formula that I had written, which has tested out as the best I have
> seen for my purpose.
>
> When I tested the MACD highlight code on this security in the time
> frame I'm trading it in, it beat the Aroon code significantly. It
> really amazed me how much of a difference it made. The Aroon code
was
> equally as good at detecting the trend changes, but the MACD code
was
> smoother and more precise, which equals the ability to see the
trend
> change sooner and stick with the trade longer---i.e. more profit.
>
> Of course, I'll have to trade with it for a while to be sure it
> works properly and changes in a timely fashion. One problem with MS
> is it doesn't have a simulator function to test systems on the
right
> edge with historical data feed. That's a major issue for me, and
not
> one that Equis is likely to fix.
>
> I don't know if you'll get as much out of ICE as I have. If you
don't
> have much experience, it will show you what indicators work best on
> what you want to trade and it will show you how to eliminate
> colinearity issues, which is important. However, you likely won't
be
> able to do some of the things with it I've just described.
>
> If you are experienced, and do some thinking, you can get some
really
> valuable information for tweaking out your current systems, or for
> building new ones. It takes patience, some study, some thinking and
> some applications knowledge, but in the end what I've gotten is
going
> to make me a few more percentage points a year—maybe more!
>
> I still can believe it only cost $99. I've mentioned the manual
> problem and the missing table of opt values for each indicator,
which
> is a problem. That's part of the reason it's still only $99.
> However, that said, of all the plug-ins I've tried (and I've tested
a
> bunch) this is the only one that really gave me something that's
> going to improve my trading. I can't promise you what you will get
> because that depends on you. Nothing is completely automatic, or
fool
> proof, but this is good.
>
> JO
>
> P.S. The formulas are passworded. If you want something that gives
> you the code, this isn't it. ICE is not written in simple MS code.
> Not only does it give you the optimized variables, it gives you a
> stop level and the indicators are normalized against one and other.
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