Experiments in Technical Analysis
- Thread starter karthikmarar
- Start date
Hi karthik
I want to inform you that many of your post and afls have been copied word to word by one jayesh and posted in the amibrokerfan forum. In some cases he has cleverly changed some names, for instance he has changed the name of RAVI to ABV. he has posted your afl on ATR trailstop, heatmap, marsi etc. Wonder whether he took your permission to do so. however he has posted them as his own.
If he has taken your permission please ignore this post.
best wishes
TAC
I want to inform you that many of your post and afls have been copied word to word by one jayesh and posted in the amibrokerfan forum. In some cases he has cleverly changed some names, for instance he has changed the name of RAVI to ABV. he has posted your afl on ATR trailstop, heatmap, marsi etc. Wonder whether he took your permission to do so. however he has posted them as his own.
If he has taken your permission please ignore this post.
best wishes
TAC
Hi TAchartist,
Yes, I checked the site and found that my posts and afls are copied and posted there.
Well it is unfortunate but can't do much about it. In this open Internet world there is not much we can do about it. Like Joy suggested to me today it is better to take as a compliments rather than lose sleep over it. Anyway thanks for bringing it up.
warm regards
Karthik
Hi Rahul
Brief explanation of ATR, HHV and LLV
ATR or the Average True Range was first defined by Welles wilder as a measure of volatility over a stocks volatility over a given period.
More specifically, the average true range is the (moving) average of the true range for a given period. The true range is the greatest of the following:
The difference between the current high and the current low
The difference between the current high and the previous close
The difference between the current low and the previous close
The value returned by the average true range is simply an indication as to how much a stock has moved either up or down on average over the defined period. High values indicate that prices are changing a large amount during the day. Low values indicate that prices are staying relatively constant.
ATR is also popularly used for trail stopping. Basically it is a volatility stop. When the volatility toward the opposite direction occurs you get stopped. Normally stops are designed in multiples of ATR. So in a trail stop like the popular chandelier exits the stop is always from the highest high over a specified period.
Highest high or HHV is the value the highest value of the stock over the specified period. (Note not the highest close but the highest high).
In the same way LLV is the lowest Low value for the stock in the specified period.
The HHV and LLV are quite useful functions to find the range of a price range over a period. The stochastic formula uses the HHV and LLV
Stochastic K (n period)= close LLV(n)/ HHV(n)-LLV(n)
Hope this would clarify some of doubts.
Regards
Karthik
Brief explanation of ATR, HHV and LLV
ATR or the Average True Range was first defined by Welles wilder as a measure of volatility over a stocks volatility over a given period.
More specifically, the average true range is the (moving) average of the true range for a given period. The true range is the greatest of the following:
The difference between the current high and the current low
The difference between the current high and the previous close
The difference between the current low and the previous close
The value returned by the average true range is simply an indication as to how much a stock has moved either up or down on average over the defined period. High values indicate that prices are changing a large amount during the day. Low values indicate that prices are staying relatively constant.
ATR is also popularly used for trail stopping. Basically it is a volatility stop. When the volatility toward the opposite direction occurs you get stopped. Normally stops are designed in multiples of ATR. So in a trail stop like the popular chandelier exits the stop is always from the highest high over a specified period.
Highest high or HHV is the value the highest value of the stock over the specified period. (Note not the highest close but the highest high).
In the same way LLV is the lowest Low value for the stock in the specified period.
The HHV and LLV are quite useful functions to find the range of a price range over a period. The stochastic formula uses the HHV and LLV
Stochastic K (n period)= close LLV(n)/ HHV(n)-LLV(n)
Hope this would clarify some of doubts.
Regards
Karthik
Hi Karthik (and other members),
I came across this thread rather late and have gone through almost all the messages. I have downloaded the trading and exploration codes for AmiBroker and using them on different stocks for different time spans. As you have rightly pointed out that whipsaws are unavoidable I do get them everywhere. I would like to experiment with the technique with some modifications to see whether better results can be obtained. As I am a newbe, I need some guidance from you and other senior, experienced and knowledgeable members here. I am listing out my views/queries below:
1) When I apply the trading system quite often I get consecutive buy or sell signals without getting a signal in the opposite direction. In my opinion an ideal trading system should generate alternate buy and sell signals (I am saying an ideal system, not necessarily every system). Am I correct?
2) When we test our system, if we get such consecutive signals in the same direction should we take only the first one and ignore all others till an opposite signal occurs? After all, if we really use the system for actual trading, we would not know that one more signal of same kind may come later. So, we would be taking the first signal and act accordingly. If another signal of same kind comes later what would we do in real situations? May be for a buy signal we my buy more. But if a second sell signal comes we may not have anything left to sell even if the second signal is more profitable. So in simulation also should we follow the same principle?
3) If a system gives buy and sell (or sell and buy) signals on consecutive days should we accept it and trade accordingly? Even if such trade leads to loss? Because on a longer time span this loss may be wiped out with a handsome gain.
For the present I stop here. After getting some guidance from the forum members I would query further.
Thanks in advance to all those who respond.
-Anant
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