Experiments in Technical Analysis

Originally Posted by ash.investor

Hi Karthikmarar,
I have gone thourgh your trading system - "MABIUTS". It is really amazing and would definitely give profitable results. I have done some kind of back testing as well.

In MABIUTS, I understood the concept of 13, 9 EMA. But I failed to understand this condition - C>Peak(1,C,2) mentioned in your pdf file. I think this condition is make sure whether the market is in trending or whipsaw mode.

Could you please explain me what does C>Peak(1,C,2) mean? (I know this sounds very stupid of me)

I don't use MetaStock or Amibroker for Trading so I am not able to used the scripts that you had attached. (See I am so very unfortunate )

Thanks in Advance...

Regards,
a$h.investor

Originally Posted by rahulg77

Hi Can anyone explain me the condition

Buy=EMA(C,13)>EMA(EMA(C,13),9) AND Cross (C,Peak(C,5,1));.

So we buy when EMA of 13 crosses above its smoothened avg of 9 days. But what does this condition cross(c,peak(c,5,1)) imply.

Rgds

Rahul

Originally Posted by karthikmarar

Hi Rahul

It just means that the stock is making a higher high... the close today is greater then the last peak...

warm regards

karthik

Originally Posted by rahulg77

Hi karthik,

another question for u ..,.i have an oscillator...how do i change the colours for the two lines I will get.

the indicator is as follows
((Mov(CLOSE,3,E)+Mov(CLOSE,5,E)+
Mov(CLOSE,8,E)+Mov(CLOSE,10,E)+
Mov(CLOSE,12,E)+Mov(CLOSE,15,E))-
(Mov(CLOSE,30,E)+Mov(CLOSE,35,E)+
Mov(CLOSE,40,E)+Mov(CLOSE,45,E)+
Mov(CLOSE,50,E)+Mov(CLOSE,60,E)))*10;
(Mov((Mov(CLOSE,3,E)+Mov(CLOSE,5,E)+
Mov(CLOSE,8,E)+Mov(CLOSE,10,E)+
Mov(CLOSE,12,E)+Mov(CLOSE,15,E))-
(Mov(CLOSE,30,E)+Mov(CLOSE,35,E)+
Mov(CLOSE,40,E)+Mov(CLOSE,45,E)+
Mov(CLOSE,50,E)+Mov(CLOSE,60,E)),13,E))*10;0;

I want green colour for the 1st line, red for second and for 0 horizontal line maybe a blue line....is it possible...please let me knwo how to specify colours in the indicator formulae itself.

Rgds

Rahul

Originally Posted by rahulg77

Hi sanjay,

thank you. when u say Plot(x,"Short-Long",colorGreen); short-long is just a name or does it also affect the chart in some manner.

Rgds

Rahul

Originally Posted by ash.investor

I am also working on methods to identify whipsaws. Because most of my systems fail to work in whipsaw and giving wrong signals. ADX is a lagging indicator and gives very late indication when most of the EMA golden crossovers have already taken place.
To some extent Chande Momentum Indicator (CMO) is good indicator but it also gives late indication.

Originally Posted by ash.investor

What I conclude from Cross (C,Peak(C,5,1) is that the today's closing price is greater than last 5th days High price. Please correct me if I am wrong or I will lose bigtime.

Originally Posted by smridhi

Dear Karthik

Please take care your health.

Regards
Suresh

Originally Posted by asnavale

Hi Murthy,

Thank you for your review. It is always helpful to record the views as soon as possible. At the outset I would say that your points were not at all hurting nor discurtious. Let me answer the points:

.

The stocks selected happen to be as per your criteria. May be it was by chance that stocks should be avoided were not selected. In case such a thing happened I would have rejected them. Random selection does not mean take any thing. We can put a precondition to include the selected item. This is one of the reasons I avoided BSE stocks. The BSE list is much larger and the chances of selecting wrong stocks is higher.

Data purity is indeed important. In another thread by Karthik, Database for AMIBROKER, you have stressed this point and given details of using the purify database option. You may remember that I had mentioned there that it helped me detect faulty data.



This is where the NVS comes. In some cases, especially, in down trend there are such occurrences of NVS. This somply means the strategy keeps us out of market, no harm in it. As far as comparison is concerned, it better to be out rather than make loss. However, the H variant of MABIUTS gives least number of such NVS.



I agree but I have given reasons.



1) I am at present giving the results for individual stock performans. Allocating a particular amount and trading is part of portfolio testing which would be presnted later in the series.

2)Sanjay has already explained his view on this. The main purpose here is comparison of results.

2) Right from the beginning of my study I had this condition adopted. I always felt I am missing something which needs keeping the number of shares constant. I could not figure out what was missing but still kept the condition. It was only when I started preparing the report it struck me. It is a simple thing, comparison of results with BUY and HOLD strategy against continuous buy and sell. The BUY and Hold comparision, in my opinion, would be more effective if we keep the number of shares traded constant. How small things miss our attention!

Thanks once again for your healthy and constructive comments. Please do keep on posting as soon as you can. It helps me also to make the future posts take care of any missing details.

Thanks to Sanjay for answering some of the points.

Dear Karthik, we are missing you. I can understand how it feels to be away from the thread you started and encouraged others to experiment. Your inputs will be very valuable. Expecting you soon in the forum with your views and guidance.

Regard

-Anant