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At 07:35 AM 1/12/2007, Mark Johnson wrote:
>Thanks for the reply but I don't know how to
>deposit smoothness in my bank account. This
>is why I carefully inquired "how do low-lag
>moving averages improve the profitability
>of trading systems?"
For example, in a moving average crossover system, you will get far
fewer whipsaws. In a system based upon Bollinger Bands as in my
previous picture, there will obviously be fewer false triggers.
> >> These better averages have a tradeoff
> >> between lag and smoothness that is better
> >> than that for conventional averages. One
> >> option is same smoothness and lower lag.
> >> The other option is much smoother (less
> >> noise) and same lag.
> >> Bob Fulks
>
>Having read Jurik's book and Ehlers's book and
>both of their web sites, I've seen dozens of
>their nice demonstrations "Look, ours draws a
>prettier picture" but no examples of improved
>profits.
Very few people will tell you the secrets of how their trading systems
work. :-)
But I can assure you that "smooth" is better than "noisy"...
Bob Fulks
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