Experiments in Technical Analysis

Hello Disciple,

I am sorry if you feel that my post was at wrong thread. As I was not interested to start a new thread & I feel as per my COMMON SENSE that this thread was a proper place to post my experience ("Experiments in Technical Analysis"). As I was not knowing that the formula was not in any TA.

I request you to please apply your common sense (as God doesnt shower me)& guide me which thread was good for this post (thinking that you does'nt know anything about TA & you are in KG standard of TA like me). I donot prefer to start a new thread for such post because I usually click on 'NEW POST' whenever I login to 'Traderji'. But the new post by newbie like me always make the list long although I login to this forum 2-3 times daily.

karthikmarar, I am sorry if I have killed your thread as noticed by Disciple.

Regards,

K S Kachhwaha

Dear karthikmarar,

Thx for the write up on TA - I have downloaded Amibroker. How did you get data of NSE/BSE into Amibroker? Pls help!

Rgds

OOPS.. We forgot something,.... What about the exploration. Imagine screening all the stocks visually for the Buy and Sell conditions

Well, Here are the Metastock and Amibroker Exploration. Attaching some screen shots also.

Note: The amibroker file extension change toenable uplaoding. Please change it to afl.

reagrds

Karthik

Hi

I understand that there were some problems in the metastock expert posted by me. I have loaded a new file. ( Post no.21, page 3). Also Metastock 9 users may face some problem as reported by joydeep (JDM). In such cases Metastock 9 users can just build it by using the formulas provided in the pdf file.Thanks Joy for bringing this up.


Regret any inconvenience caused.

regards

Karthik

Hello Compucemsoft!
I had no intention to make you feel sorry.I had one intention to make you feel your mistake.If you closely read the contents of the first post of this thread,you would notice that this thread is created for discussing and designing trading system.In your post you have your own queries but that had no relevance with the purpose and contents of this post.
Pls try to understand my point,my friend.I have no hard feeling about you.Actually senior members are discussing great articles in this thread.Every thread has it's own purpose in this forum.If you do not know how to open a new thread for posting your queries,then you please find out that.It's easy.
I do not know whether I'm in kindergarten or not regarding TA analysis.I want to tell you that I'm just a fulltime ordinary trader. I like to call myself a student of the market.I'm not hurt by your words.You can not hurt me without my consent.
Take Care.
God Bless You.
Disciple.

hmmm very nice Disciple,very nice................okay sorry about that Karthik,just had to comment on that one.

Saint

Karthik!
Thanks for taking pains to provide the screener.

Can you please try to build ADX into the system in line with our discussion in the chat room?

Best Regards,
--Ashish

Ashish

Yes, We will work on improving the system. As suggested by you we will try to incorporate the ADX. Other ideas are also welcome. Hope this will be a learning process for many.

Soon we will take our next system. Yes, the "now famous" K-39 system, which already discussed in the chat room.


warm regards

karthik

Ashish

As we discussed I tried to improve the system by incorporating ADX. Following is the study

I will not go into the details of ADX now. The normally rule is that when the ADX is above 25 the stock is trending. (Some consider 30 as a safe value) The DI+ and DI- lines decide the direction of the trend. When the ADX is rising along with DI+ the trend is up and vice versa.

Here we are trying to catch the up trends, as our system is a Trend following system. So we will add a condition as follows for the entry with the set up remaining the same.

ADX>20 and DI+>DI-

So our revised conditions are as follows.

Setup: EMA(13) of close > Signal Line
Entry: Close crossing the previous peak and ADX>20 and DI+>DI-
Exit : EMA(13) crossing below the Signal Line

Signal Line : EMA(9) of EMA(13)

I made a study of the this revised conditions on various stocks. It was found that when the ADX>20 condition was used the system reduced Whipsaws but missed many up moves. Refer to the attached chart named Mabiuts with ADX-2.

I changed the condition to ADX>15 with other conditions remaining the same. Now the system caught more of the up moves but also missed some of the whipsaws.
Refer attached chart named Mabiuts with ADX-1.

Using ADX Condition ADX>25 missed a lot of up moves reducing the performance of the system.

In effect the ADX did not enhance the system very much but also added some drawbacks. The system by itself without ADX seems to perform very well. I think Whipsaws are par of any trend following system based on moving averages. We may have to think of other alternates to reduce Whipsaws. Once that is done the Mabiuts will be very good system for medium term, stress free trading. One alternative could be to use adaptive techniques. We will explore this aspect in due course.

Warm regards

Karthik

Hello Karthik,

Thought of giving u some more trouble, as u already know that i started with ami4.70.5, the afl provided by u is not working can u plz. help. Ur efforts are appreciated.

Gaurav