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In a message dated 10/3/98 6:35:09 AM, PaulWeston@xxxxxxxxxxxxxx writes:
<<I don't use Kaufman's AMA as a trading tool, but I use trading bands around
KAMA.
The major drawback, as with any breakout system, is having large drawdowns.
Kaufman himself points this out in his book.
Paul Weston
>>
I am wondering what assumptions are required to modify the MAs. For example
if the market is trending strongly should the MAs be faster or slower. I
could argue the case either way. Faster MAs might give you an exit with less
giveback. Slower MAs might keep you in a good market longer. Has anybody
bothered to test this both ways. I'm interested in any conclusions based on
test results and not assumptions about which way to modify the MAs. Please
share any info you might have on this subject. I think it is an important
issue to resolve before we all run out and start modifying MAs in the wrong
direction for no good reason.
Thanks,
Chuck
http://traderclub.com/
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