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Adrian wrote:
>Would it be possible for Alex or Bob to publish a before and
>after scenario. They don't have to reveal the system, but simply
>show, using the exact same rules, what effect switching from say
>regular Bollinger Bands to JMA/T3 based bands can do to various
>profitability numbers. Would this be possible?
Ummm, wouldn't Bollinger bands as entry-exit signals NEED to lag
prices because otherwise you wouldn't get the crossovers?
In my posts on this topic, I have never advocated using a low-lag
smoother as a simple drop-in replacement for SMA or EMA. What you
design around low-lag smoothers would be a different strategy.
I could see using low-lag BB as a way to set a trailing stop,
though. That might be a valid drop-in substitution test. Hmm...
you know, the overshoot of T3 might actually help too, by creating
an artificially bigger stop at market turns....
In the case I mentioned where I developed an alternative parabolic
indicator that used statistical filter logic to adjust the parabolic
speed, it wasn't applied to a system that was coded. I did it for a
trader who trades manaully (and mechanically) off indicators. The
market, I recall, was Bund 3-minute charts, which have frequent
large dramatic moves. The effect of the variable-speed parabolic
was to reduce settling time so that he would get earlier indications
of trade opportunities after a large dramatic move. The effect was
to increase his profits by increasing the number of signals, which
he wouldn't ordinarily get if he waited for the classic parabolic
indicator to settle.
-Alex
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