System Based Trading

U

uasish

Guest
#71
Raja,
Go & complete the task ,1st thing 1st you are a System trader ,so complete your task 1st.

Asish
 
#78
U

uasish

Guest
#80
I think people may have misunderstood the Reports generated by backtest in Saint's thread.(Plz keep Saint's thread free from controversy)
The issue here is whichever method you think may increase your bottomline adopting that is prudent,i am in sync with karthik that let us 1st understand the basic.
There is a possibility we are not aware of the basics of a Moving Average,between SMA & EMA people prefer EMA becoz SMA is lag - it is in the basic construction, the Maths behind (as bav aptly says)it is such it is more center loaded than EMA which is front loaded.
Now suppose i take a 13 period SMA (means the MA is in center) next i take another moving avg of 13 period of that MA means i take MA of MA,so this MA of MA is again at center of 1st MA like this :=

A- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - B
A (assume C at center) C =1stMA B
A (assume D at center between C & B) D= 2ndMA B

Our 2ndMA(MA of MA) is at center of 'C' & 'B' at D ; Now i take a difference of 'C' & 'D' & add that to AB
what will happen ? the line AB will increase by CD lenght ,means (as 'C' =50 % of AB & 'D' is at 75% of AB,hence 'C' - 'D' = 25 % )
At end dose not the lag reduced ? now add a 13 period EMA with this then divide that product by 2.
See this one now made is far better than even EMA.
Metastock code of the same := (Here i have used Exponential which can be tweaked with SMA)
@can only be used for personal use
.........................................................8...........................................
a:=Mov(C,8,E);
b:=Mov(a,8,E);
Difference:= a - b;
m:=a + Difference;
m;
........................................................8.................
Now see wheteher this is better than plain EMA.
Plz remember ignorance is not pardonable in indian penal code,more over adding valuable suggestion are only solicited from Experienced persons who are Survivours of the Mkt vagaries,any green horn having tons of unpractised knowledge would be better off to listen for their own interest.This proffession has High Casualty rate no book or internet knowledge until tempered in practical high octane exposure is useful,let us plz lend our ears to experience.
 
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