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--- In equismetastock@xxxxxxxxxxxxxxx, "stevendecanio" <sdinc@xxxx> wrote:
> Can anyone offer some feedback (positive or negative) on any of
> the plugins offered by Equis? The write ups on them make them
> sound easy to make profitable trades.... Any info or experiences
> appreciated. Thanks, Steve
A couple of comments.
Trading in general is more about the individual than the tools he
uses. Once you know how to trade, you can probably use just about any
tool out there to trade with. I think that's a dirty little secret
people don't often talk about.
In buying Metatock you were searching for charting software and tools
to give you a statistical edge. All you need is a statistical edge
and to combine that with the basic disiplines of a trader to make money.
So, the tools are not the end all be all.
About plug-ins. I have three.
1. TradeSim: The metastock system tester has some issues I wont go
into. So I purchased a third party system tester to help out. I like
the fact that Tradesim makes it so easy for me to view the drawdown
the system creates and other stats. It also has far greater
capabilities then the metastock tester. The drawback? This requires
you to create "trade data bases" using very specific language that is
both in Metastock and some unigue to tradesim. It has a pretty large
manual that you would have to print up and deal with. Since I am a
very very poor programmer, this was a real challange to get past.
2. ICE: Ice is easy enough and it going to get better. It allows you
to optimize all existing tools in Metastock that are reasonable
against any stock or index you want to trade. It does that by setting
up optimization simulations within the Metastock system tester. You
can select all the optimizations in a single family of indicators and
run that family against a stock. Then dig through it to see what
looks good to you. Once you find several divergent indicators that
look good it's up to you to figure out how to mix and match them to
make a good system. Ice also has a formula tool due out this month to
help with the nasty task of setting up formulas for the optimization
you like. The formula issue is a big deal with me so I'm looking
forward to this upgrade with is free to those who already own ice.
3. Trendmedium. It's a one shot pony. I like it and use it for a few
systems. But I think it's nothing more than complicated moving
averges optimized massively. From my testing it appears you can use it
to develope a statistical edge, watch out for the drawdown. I tend to
wander outside the presets. In fact I'll load a ticker up 25 or more
times and set up a broad range of settings for trendmedium to use in
it's optimization process. I then run the results through my third
party software looking at drawdown, annual returns, etc.
This is how I play a traiding system. Lets say I develope a trading
system. I may even backtest it and know it's drawdown, optimize it to
reduce drawdown. Often drawdown is still more than I like.
So when I get a "buy" from a system I take that as a "suggestion" to
buy. My next step is to look at the chart and look for trend, support
resistance. If the "Buy" is up against resistance or a downtrend
line...I wait a day or two to see if resistance can be crossed. If I
take the buy, these days I tend to use the ICE trailing volatility
stop loss in nearly every system I trade. Even for pattern plays.
Every system I ever built would put some buys in obviously poor
places. A quick glance at a chart should be able to tell you if there
is reason to take the buy, wait a day or two on the buy, or forget the
buy. So I'm not a pure system trader. And I'm not particularly
interested on becoming a great system builder. My goal is just to beat
buy and hold. I'm not worried that my "systems" may not be the best
systems out there. You don't have to have the best system out there
to make money.
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