Experiments in Technical Analysis

[karthikmarar]

Hi Amarnath

Thanks for making this thread more interesting. First let me just clarify one thing. This thread was intended to share our experiments in Technical Analysis and never was intended to elaborate in detail a particular Trading system.

I agree with Ashish. Experimentation leads to understanding, insight, Knowledge and most importantly like Ashish said Improvements. In my humble opinion unless we understand a particular indicator we can never use it effectively in our Trading system. To understand and Trade makes a world of difference from Trading Mechanically. Unfortunately most newcomers never try to understand how an Indicator works and what come behind the calculation of the Indicators. The questions raised in various threads especially about stochastic is a good example for this. This understanding comes through experimentations.

Many people say forget all indicators and concentrate on only price action and volume. Understanding price action is not easy and come with knowledge and experience. So most people at least in the initial period have to depend on indicators, which are again reflection of the price action.

And how do we select one toolbox. Of course the easiest way out is to borrow or buy one. Then again it will be mechanical trading. I would advice the newbie to select a basic toolbox and improve it continuously by experimentation. Like saint would say, why walk on crutches when you can walk on your own feet. That it why I am posting my experiments with all codes and details so one can experiment and learn.

Yes, I agree with you that to develop a system in a professional way is always better. Unfortunately it is easier said than done. Like everything in life one has to go through the hard way to find out what is the right way

The trading system posted by you looks excellent. I do hope most of us would also to able to develop such good systems with learning and experimentation.

And of course if many of the senior members do feel that this thread would be misleading the newbie then it is time to close this thread and I would have absolutely no regrets in doing so.

Warm regards

Karthik

 

[saji oommen]

Hello Karthik,

I am a regular follower of your contributions to this thread and feel it is very helpful and interesting to any body interested in trading markets. Moreover your very good attitude of providing excellent AFL and Metastock examples and also regular explanations is very useful for any new persons entering into the world of stock markets.

I have noticed there are many persons in this forum who would like to know how to use AMIBROKER fruitfully. Unfortunately many of them are not able to use it properly due to lack of proper guidance. Threads like yours give newbies oppurtunities to use it properly and also develop and improve on trading systems.More over going through your replies to various queries is ample evidence of your sincerity to help others.

So my request is you got to understand there will always be suggestions and opinions in a forum and that is not a good reason to shut down this thread. By shutting down this thread Mr. Amarnath will not loose anything since he has excellent systems and efficient people to code it. The loser will always be some one who wants to learn more about trading systems and methods and also looking for a helping hand.


Regards

Saji

 

[moneypick]

And of course if many of the senior members do feel that this thread would be misleading the newbie then it is time to close this thread and I would have absolutely no regrets in doing so.

Karthik

Dear Karthik,

Please do not closed this thread. This is the only source where we get new idea/trading system with example. I am always waiting for your new idea. Please....Please....carry on.

Mr. Amarnath is only show us a screenshot, not disclose trading strategy use in screeshot.

Regards,

(moneypick)

 

[ziya]

Hello Karthik,
i hav just seen ur thread and found it interesting
i req u to continue the thread becoz as a newbie i belive this thread is going to help me
so carry on

 

[ger06]

Dear karthik;
Hi

Please donot stop posting ur views. I am one of the regular reader & learning a lot.

Keep it up.

Regards........

 

[amarnath]

Hi Amarnath

Thanks for making this thread more interesting. First let me just clarify one thing. This thread was intended to share our experiments in Technical Analysis and never was intended to elaborate in detail a particular Trading system.

I agree with Ashish. Experimentation leads to understanding, insight, Knowledge and most importantly like Ashish said Improvements. In my humble opinion unless we understand a particular indicator we can never use it effectively in our Trading system. To understand and Trade makes a world of difference from Trading Mechanically. Unfortunately most newcomers never try to understand how an Indicator works and what come behind the calculation of the Indicators. The questions raised in various threads especially about stochastic is a good example for this. This understanding comes through experimentations.

Many people say forget all indicators and concentrate on only price action and volume. Understanding price action is not easy and come with knowledge and experience. So most people at least in the initial period have to depend on indicators, which are again reflection of the price action.

And how do we select one toolbox. Of course the easiest way out is to borrow or buy one. Then again it will be mechanical trading. I would advice the newbie to select a basic toolbox and improve it continuously by experimentation. Like saint would say, why walk on crutches when you can walk on your own feet. That it why I am posting my experiments with all codes and details so one can experiment and learn.

Yes, I agree with you that to develop a system in a professional way is always better. Unfortunately it is easier said than done. Like everything in life one has to go through the hard way to find out what is the right way

The trading system posted by you looks excellent. I do hope most of us would also to able to develop such good systems with learning and experimentation.

And of course if many of the senior members do feel that this thread would be misleading the newbie then it is time to close this thread and I would have absolutely no regrets in doing so.

Warm regards

Karthik

Dear Karthilk,

My intention is not to make you to close this thread or so . I am just trying to make it more prefect thats all , but some ppls here may feel bad about me always be of nature of veribage i do use . Generally when i point out mistakes i do behave agressivesly so mostly beacuse here the mistakes are too costly lesson in our industry and may bring wrong preception to newbies and build half cooked knowleadge and later such ppls mislead more and more ppls .

To the ppls who feels always wrong about me must realise even though i have good and consistent system why i am being here ? just to help as much as i can and NOT to waste my bandwidth and most precious time

For now i will stop at this point as just watch this thread and see how it progress and my little more advice

Any system in this world must be based on two grand concept

1. Price following systems / Trend following system ( Buy on strenght sell on weakness ) and

2. Contra Trend following system ( Buy on weakness and sell on strength )

In our case which is price following system 9 13 MACO which dont take element of contra trend detection and hence it only make money during trend which only occurs 30% of time and hence even if winning ratio of this system is > 60% it may not be consistent over periods of time when market consiladates and if move into volatile sideway phase and choppy casas .

so i suggest to develop a contratrend indicator and trend filter preferbly based on cycles for exit and contra trend position sizing and a stop loss indicator ( eg ATR based etc just eg dont take as it as ) and trial stp based on its historical volatility so that this system make take more prefect shape and become consistent . Hope this helps and i am going to keep aside and not going to write on this thread for some time untill i see really some thing useful.
Good luck and Good trading to all

 

[Roshanna]

hi karthik,
can u pl explain the RS lines afl with example(maybe i am slow ) i get charts but am unable to understand line
cheers

 

[jraj]

And of course if many of the senior members do feel that this thread would be misleading the newbie then it is time to close this thread and I would have absolutely no regrets in doing so.

Warm regards

Karthik

I am not senior member,but as a newbie,plz do not close this thread.

Keep up the good work.

Jay Raj

 

[avinash]

Top class thread,Karthik,and looking fwd to more.Some great posts from Ashish.

And some great contributions from Amarnath as well.

Thank you all!

Avinash

 

[kuldeep49]

And of course if many of the senior members do feel that this thread would be misleading the newbie then it is time to close this thread and I would have absolutely no regrets in doing so.

Warm regards

Karthik

Karthik,

Why close your thread. You are not misleading anybody. You of all people should know that there is no such thing as a perfect system. As one continues to blunder one's way through the market, there is an add-in that takes place to any system that you use ... and that is experience, which comes through making & learning from mistakes. Newbies have to make their own mistakes to learn ... what you provide are guidelines to minimize the impact of the mistakes. Thats what any trading system does.

Cheers & keep going, friend.

Kuldeep