[RT] Re: GEN - simple-minded use of the entropy system

[wong <whs@xxxxxxxxxxxx>]

Hi James:

I don't mind using a simple-minded indicator/system to trade.

As the late Dang Siu Ping said: "It doesn't matter whether the cat is white
or black.  As long as it can catch mice, it's a good cat."

So here are 2 "averaging down buy" systems using the entropy indicator as
initial buy signals.  (Please refer to the attached charts.)  The top one
is based on Clyde's original "busted" version, and the bottom one is the
smoothed busted version.

I didn't do an extensive test.  Just tested on one stock only - MSFT - for
about 2 years.  Both test results are heavily optimized, so I can't vouch
for future performances.

But here's a summary of trading results:


				original		smoothed
				-----------		-----------
total net profit		516			680
total loss			0			-17
total # of trades		13			14
maximum drawdown		-121			-66	
return on account (%)	427			1036


I'm still trying to figure out Prosper's version.  Maybe Prosper and others
can give me some advice?


Thanks in advance!


Regards,

Wong
=============================
At 05:19 PM 06/06/2000 -0700, James Taylor wrote:
>The question is:  Can you make money with this ?
>
>Has anyone built a system around it and tested it ?
>
>All this talk of entrophy (looks like a moving avg to me) may not make a
>dime in the markets.

Attachment Converted: "f:\eudora\attach\msft 06-06 entropy.gif"