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Prabs:
Here are 2 rules of thumb.
1. Never accept default settings as being cast in concrete or etched on
steel.
Try different settings, you may find that for your trades the default
settings are poor. On the other hand you may find that the defaults are just
fine for you.
2. You can run optimization tests to find a suitable range of parameters. If
you do you might find that one set of parameters is much better than the
others. This usually means that the parameters have picked up a peak or
valley. The next best sets of parameters will be grouped close together;
use one of these.
Lionel Issen
-----Original Message-----
From: Prabakaran Rajah Thiagarajah [mailto:prabakaran@xxxxxxxxxxxx]
Sent: Thursday, October 07, 2004 11:55 PM
To: Equismetastock (E-mail)
Subject: [EquisMetaStock Group] Method to obtain signal period
Messrs,
I would be grateful if anyone can advise rule of thumb to establish signal
period for an Indicator. Most often we read in the manuals the proposed
signal periods are normally set at 14-day signal period for RSI, ADX, Aroon
and etc. If signal periods are changed to longer duration then the Indicator
would provide different projection values of Sell and Buy. Sometimes this
can be confusing and falls out of range.
Seeking your advise.
Thanks and Regards,
Praba
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