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Hi, how you normalize the price and how you
calculate the first derivative of the
quadratic??
Your idea is really interesting, I use a
system on the relative strenght on stocks, in
which I normalize a particular macd
(mov1-mov2)/mov2 and than rank the stock. If someone would comment this
idea, I appreciate very much.
thank in advance
----- Original Message -----
Sent: Wednesday, November 23, 2005 9:33
AM
Subject: RE: [EquisMetaStock Group] Re:
Parabolic trend "line"
Thanks for the info Ed, it is always interesting to here
from real traders,
and finding out what works for
them.
Thanks
Dave
-----Original Message-----
From:
equismetastock@xxxxxxxxxxxxxx
[mailto:equismetastock@xxxxxxxxxxxxxxx]
On Behalf Of Ed Hoopes
Sent:
Wednesday, 23 November 2005 5:43 AM
To: equismetastock@xxxxxxxxxxxxxx
Subject:
[EquisMetaStock Group] Re: Parabolic trend "line"
The goal of many
indicators is to determine the true trend of the
security in the presence
of noise.
MS has pre-programmed 3 indicators that fit price to a
straight line:
Lin Reg Ind
Lin Reg Slope
Lin Reg
Trendline
My observation was that prices rarely move in a straight
line, much
more common is that the price action is curved - like a section
of a
parabola. (A straight line is a special case of a parabola with
the
x^2 term equal to zero)
After programming the fit to a
quadratic, I found that it more
accurately determined the markets trend,
with significantly less lag
than a fit to a straight line.
After
normalizing prices to $100 and calculating the first derivative
of the
quadratic at the most recent bar, I found that I had a
accurate, fast
responding ranking system that worked well with ETF's.
My portfolio of the
top 4 ranked ETF's (out of a universe of 20 ) is
up 22% YTD with a max
drawdown of 6%.
I trade the above system in 5 accounts for my
family. I am a private
investor - nothing for sale - no
website.
Ed Hoopes
--- In equismetastock@xxxxxxxxxxxxxxx,
"david" <dwei9361@xxxx> wrote:
>
> If anyone uses parabolic
trend lines as part of a systematic approach I
> would be very
interested, as I can not see the logic behind them ... it
> seems to me
'curve fitting' literally.
>
> Regards
>
>
Dave
>
> -----Original Message-----
> From:
equismetastock@xxxxxxxxxxxxxxx
[mailto:equismetastock@xxxxxxxxxxxxxxx]
>
On Behalf Of Jose Silva
> Sent: Tuesday, 22 November 2005 5:17
PM
> To: equismetastock@xxxxxxxxxxxxxxx
> Subject: [EquisMetaStock
Group] Re: Parabolic trend "line"
>
> Ron, Ed, plotting a
parabolic fit is not impossible using MSFL - it
> just requires a
little imagination and a lot of free time.
>
> However, since
abstract mathematical plots are generally considered an
> absolute
waste of *valuable time* and effort, and since it has little
> or
nothing to do with actual trading, you won't find much of that
> around
here.
>
> For complex parabolical(!) plots, try dedicated maths
software such as
> Statistica 7. http://www.statsoft.com/v7.htm
>
>
> jose '-)
> http://www.metastocktools.com
>
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