Advanced Concepts Used In Technical Analysis

vvvv · #1 27th April 2008, 08:32 AM

i would like to start a new thread on sum advanced concepts like smoothing,zero - lag , noise reduction , cyles,etc,etc.
wud appreciate very much if knowledgable persons take part in this discussion & share their knowledge as to how these things are achieved , the advantages & disadvantages of these things. i am unable to find much info abt these things on the net, but ive seen these being used very frequently in building trading systems.

CreditViolet · #2 27th April 2008, 09:01 AM

Quote:

Originally Posted by vvvv

smoothing,zero - lag , noise reduction , cyles

For a start, those are not very advanced. Most of it is nonsense actually, like a lot of everything else.

Cheers

vvvv · #3 27th April 2008, 09:25 AM

Quote:

Originally Posted by CreditViolet

For a start, those are not very advanced. Most of it is nonsense actually, like a lot of everything else.

Cheers

tell me from where to start buildig up a trading system???? im lost.

CreditViolet · #4 28th April 2008, 09:41 AM

Quote:

Originally Posted by vvvv

tell me from where to start buildig up a trading system???? im lost.

Being lost is a good thing because there are no set paths to learning anything worthwile. It takes a lot of failing to find the right way to do things.

Basically there are two ways to design systems.

The first approach is taken by the quantitatively trained - one starts with the data in hand and work on it a 'wild goose chase' way. Data mining, statistics ( especially non-parametric ) and programming come in handy. This approach though not ideal is perhaps the quickest way to a working system which may or may not be robust.

The second approach is to start with an abstract market understanding.This is the harder way since quantitative skills are needed here too."Market Understanding" may also take a few years, depends on time spent. What makes this path harder is lack of any guidance and worse - misguidance with all the Elliott,Wolfs,Indicators and a variety of other uninhibited nonsense that plagues the commoner here and elsewhere.

vvvv · #5 28th April 2008, 07:25 PM

HOW TO START THEN
1)messing around with the indicators already present like tweaking or sumthing like tht.
2)doing permutation & combunation with indicators till u find the right one.like making a macd out of the rsi or sum crazy stuff like tht.
3)go into elliot wave,wolfe wave & fractal analysis(its huge & time consuming).
5)delve deeper into smoothening , zero lag , cycles concept
6)start off by studying statistics & maths like u used do in school.
7) none of the things mentioned above.

omkarmango · #6 28th April 2008, 08:10 PM

Quote:

Originally Posted by CreditViolet

Basically there are two ways to design systems.

neutrality. hmmm

but a perfect description...I am under impression that you are seriously going to help to build up a good system.

CreditViolet · #7 28th April 2008, 08:13 PM

Quote:

Originally Posted by vvvv

1)messing around with the indicators already present like tweaking or sumthing like tht.

Yes

Quote:

Originally Posted by vvvv

2)doing permutation & combunation with indicators till u find the right one.like making a macd out of the rsi or sum crazy stuff like tht.

Yes

Quote:

Originally Posted by vvvv

3)go into elliot wave,wolfe wave & fractal analysis(its huge & time consuming).

Avoid anything esoteric.

Quote:

Originally Posted by vvvv

5)delve deeper into smoothening , zero lag , cycles concept

Sure.As you delve you will find tha they are not really advanced/complicated and perhaps unnecessary.

Quote:

Originally Posted by vvvv

6)start off by studying statistics & maths like u used do in school.

Definitely.

Quote:

Originally Posted by vvvv

7) none of the things mentioned above.

Yes.Just Kidding

sunbim31 · #8 28th April 2008, 08:34 PM

Vikram

Too much analysis leads to paralysis.I told you na , be simple , actually do some real trading & feel the hot & cold of market.

Sunando

uasish · #9 28th April 2008, 11:14 PM

" The first approach is taken by the quantitatively trained - one starts with the data in hand and work on it a 'wild goose chase' way. Data mining, statistics ( especially non-parametric ) and programming come in handy. This approach though not ideal is perhaps the quickest way to a working system which may or may not be robust."

Jesse has answered your Query.

"Data mining, statistics ( especially non-parametric ) and programming come in handy"

Sunondo has suggested you to be simple.

You have to come through a process ,which most of us are going through.

RSI · #10 28th April 2008, 11:15 PM

Quote:

Originally Posted by CreditViolet

"Market Understanding" may also take a few years, depends on time spent. What makes this path harder is lack of any guidance and worse - misguidance with all the Elliott,Wolfs,Indicators and a variety of other uninhibited nonsense that plagues the commoner here and elsewhere.

CV
As usual, you have hit bullseye here. I agree 100%