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Message-ID: <358717B9.CEA1FAFF@xxxxxxxxxxxxx>
Date: Tue, 16 Jun 1998 18:11:21 -0700
From: Manning Stoller <mstoller@xxxxxxxxxxxxx>
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To: Terrence Smart <smart621@xxxxxxxxxxxxx>, omega-ist@xxxxxxxxxx
Subject: Re: STARC Bands
References: <35869CE1.2C742C17@xxxxxxxxxxxxx>
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Hi Terrance,
Let me answer you briefly now and in more detail later when I have more
time.
Demand Index does NOT pertain to open interest. That was a type error that
i was not even aware of until I arrived at the conference.
Starc bands use average true range in its calculations rather than the
close that Bollinger uses.
Since ATR is used, the bands are self adjusting to the volatility. While
certainly not perfect (is anything?), the starc bands do an excellent job
in identifying market extremes.
The parameters used in the study are never changed (optimized) for any time
frame or any market. This, to me, is most appealing.
If you like, I will post the .ela file to the list.
Just let me know.
The demand index was programmed by Sam Dennis and is not mine to give out.
What I can tell you though is that it appears to work quite well in giving
major trend reversals in some markets.
Regards,
Manning Stoller
Terrence Smart wrote:
> Manning,
>
> I was looking in the TAG Conference compendium of tapes
> from past years and saw your name.I have heard of the STARC Bands and
> the Sibbets Demand Channel but didnt know that you had created one of
> them. If you have the opportunity, I would like to know more about your
> technology and your approach using volatility, open interest and the
> ability to determine the level of risk prior to trade entry.I look at
> volatility but in a more rudimentary manner. I look forward to your
> response.
>
> Terrence Smart
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