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Reversing the parameters (buying when it's overbought and selling when it's
over sold) produces a loss of $15900 over the same data. There are several
problems that make this system fail. To mention at least 2; firstly, the
Stop value of $200. Virtually every entry gets stopped out within a couple
of bars. Secondly, using the traditional overbought/oversold values of 80/20
makes this system produce very few (1) buy signals. As was put to us, both
the RSI and the Stochastic must be oversold before a signal is generated.
Therefore only one buy signal was produced over the data.
Brent
-----Original Message-----
From: Robert H. Bishop <rhbishop@xxxxxxx>
To: brente@xxxxxxxxxxxx <brente@xxxxxxxxxxxx>; RealTraders Discussion Group
<realtraders@xxxxxxxxxxxxxx>
Date: Monday, April 05, 1999 4:09 PM
Subject: Re: RS OF HOUSTON
>Consider reversing the parameters on this baby. Buy when it says sell and
>visa versa.
>Could be a winner!!!!!
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