Experiments in Technical Analysis

[gobatman2001]

Hi Amit

You are right... the two signals are missing... chart enclosed

regards

Karthik

Hi! Karthik,

Thanks a lot for your reply. The Mabiuts system is truly impressive.

Guess, we will have wait till someone who is familiar with building templates in Fibotrader comes up with a solution.

Soumya, can you help please...

Thanks & regards,
Amit

 

[gobatman2001]

Hi rpc

The peak(c,n,1) function detects the last peak. The n values which is 5 represents the percentage change for detection of peak. If we have higher % then bigger peaks are detected foregoing some of the smaller peaks and lower % values detects the smaller peaks as well.

Here what we are trying to do by the condition cross(c, peak(c,5,1) is that we are checking if the close value is greater than the the value at the last peak. In other words we are ensuring that the stock is going to make a higher high. This helps are to catch the trend early and also when the stock breaks out of a range. My experiments with various values of n show that 2% should be adequate for most stocks. I am enclosing a chart showing the same for better understanding.

Hope this is clear. If not feel free to ask.

warm regards

Karthik

Hi! Karthik,

A few thoughts that have been clouding my head over the weekend.

Would be grateful if you could please reply. This would help me understand the system better (Even though I don't I have it in Fibotrader )

1) Is the Sell call generated only when the 13 day EMA crosses the signal line from above or should the stock fall by a certain percentage as well to generate a sell call?

2) Once you are in the trade and there is no Sell call generated, should one keep adding to his portfolio when the stock rises by more than 2% than it's previous peak.

3) In one of your posts, you had mentioned that by using a 13 day Adaptive Moving Average (AMA) instead of the 13 day EMA (signal line remaining the same), you get fewer whipsaws.

4) Is the AMA same as KAMA?

5) If the AMA gives you fewer whipsaws, then should you not be using AMA instead of EMA in the system?


Thanks & regards,
Amit

 

[rpc]

Hi Amit
Thanks for the reply.I ran MABIUTS under both fibotrader and AB and got entirely different stocks listed.The fibotrader template has used "High/Low" criteria to buy which I guess is different from Peak criteria of AB.Howewver if I remember correctly Soumya has said the High/Low citeria is better than Peak criteria in response to sarthc's(whos has developed MABIUTS template for fibotrader and I merely copied it) query on MABIUTS.So even I believe Soumya or Robert should guide us on this.
rpc

 

[rpc]

Hi Karthik

Sorry, still not clear.Do you mean the current close should be higher than latest highest *high* or latest highest *close* by 5 %.Put it differently does PEAK(C,5,1) and PEAK(H,5,1) mean one and the same ?I think they are different. Pls guide.

Also pls consider follo about which I referred to in my earlier post

ADANINET
Date Open High Low Close
9/11 142.6 152 142.15 148.7
8/11 147.8 149 137.05 141.1
7/11 147.95 153.9 146.4 147.6


MOTHERSUMI
9/11 101.6 101.6 99.8 101.25
8/11 100 103 99.1 100.4
7/11 95.9 108.9 95.9 99.05

MABIUTS has given Buy on 9/11/06 for both the above stocks eventhough their close is below HIGH of 8/11/06.why is it so ?
Pls advice

rpc

 

[rpc]

hi Amit
I have downloaded your trading system.Thanks for the same.
After importing the templates and filters I have follo problems.Pls help me solve them.
The first filter showed follo 3 conditions
1. Trading system _Default shall generate a Buy signal since not more than 2 days ago
2. Indicator Relative ...
3. Trading system shall generate a Buy signal not more than 2 days ago
I think the filter has not been imported properly since condition 1 & 3 does not contain condition
mentioned in your Amit's Trading guide.doc.Pls advice what is to be done.
The first 3 condtions(Filter Stocks) are included in 01 Consolidated Filter.Filter.So they all are run at one time and generate a list of stocks satisfying the conditions.
The conditions realting to volume & Price are 3 different filters so each will generate a seaparte set of list of stocks.Thus we will have 4 list of stocks.Should we not have all the conditions in one filter ? Pls advice.
rpc

 

[gobatman2001]

Hi Amit
Thanks for the reply.I ran MABIUTS under both fibotrader and AB and got entirely different stocks listed.The fibotrader template has used "High/Low" criteria to buy which I guess is different from Peak criteria of AB.Howewver if I remember correctly Soumya has said the High/Low citeria is better than Peak criteria in response to sarthc's(whos has developed MABIUTS template for fibotrader and I merely copied it) query on MABIUTS.So even I believe Soumya or Robert should guide us on this.
rpc

Hi! rpc,

Please do have a look at Post 348 & 349 at the following url:
http://www.traderji.com/software/6575-fibotrader-excellent-free-ta-software-18.html#post66019


Awaiting your reply...

Thanks & regards,
Amit

 

[gobatman2001]

hi Amit
I have downloaded your trading system.Thanks for the same.
After importing the templates and filters I have follo problems.Pls help me solve them.
The first filter showed follo 3 conditions
1. Trading system _Default shall generate a Buy signal since not more than 2 days ago
2. Indicator Relative ...
3. Trading system shall generate a Buy signal not more than 2 days ago
I think the filter has not been imported properly since condition 1 & 3 does not contain condition
mentioned in your Amit's Trading guide.doc.Pls advice what is to be done.
The first 3 condtions(Filter Stocks) are included in 01 Consolidated Filter.Filter.So they all are run at one time and generate a list of stocks satisfying the conditions.
The conditions realting to volume & Price are 3 different filters so each will generate a seaparte set of list of stocks.Thus we will have 4 list of stocks.Should we not have all the conditions in one filter ? Pls advice.
rpc

Hi! rpc,

Here's what you can do:

1) Import the template 13 - 30 MA Crossover
2) Import the template Trix crosses 13 MA
3) Create the Consolidated filter on your own.

Since the RSI condition was not based on a template, I had no template to attach. I think this is where the confusion is. Am sorry about the same.

Attached is a screenshot of what the Consolidated filter should look like.

Coming to your query of the Volume filter ...

I have intentionally chosen 3 separate filters, so that I get to know which stocks have risen by how much volume in terms of %

Incase you want to have one filter, you can do so by creating 1 filter. Create a filter using the OR Condition and put all the 3 Volume templates there (Just like the Consolidated filter)

Hope this clarifies your queries.

Thanks & regards,
Amit

 

[karthikmarar]

Hi! Karthik,

Thanks a lot for your reply. The Mabiuts system is truly impressive.

Soumya, can you help please...

Thanks & regards,
Amit

Thanks, Amit. Mabiuts in spite of its simplicity does provided good profitable trades. It is also good starting point for a new trader.

Unfortunately I have not used FIBO Trader and so cannot help on this. Looking at the number of people using Fibo Trader I am tempted to learn it. I understand that this software is resource hungry and also time is short and too many things to do....

Soumya Where are you

Warm regards

Karthik

 

[karthikmarar]

Dear Amit

Thought you would have switched over to Ami by this time

Ok, Here we go with the answers.

1) Is the Sell call generated only when the 13 day EMA crosses the signal line from above or should the stock fall by a certain percentage as well to generate a sell call?

As it is right now the sell call is generated as soon as the 13 day EMA crosses the signal line. If we wait for the stock to fall certain percentage then we may give back too much of our profits. However I am trying to use the conditions of stock falling below the last trough to create short trade conditions. Still not happy with the results so far..

2) Once you are in the trade and there is no Sell call generated, should one keep adding to his portfolio when the stock rises by more than 2% than it's previous peak.

One can add on when we have consecutive buy signals without a sell signal. It only depends on your trading style. It also provides a chance to enter for someone who missed the first buy signal.

3) In one of your posts, you had mentioned that by using a 13 day Adaptive Moving Average (AMA) instead of the 13 day EMA (signal line remaining the same), you get fewer whipsaws.

Yes, It is a variation I had tried. I will post the Afl soon for you to checkout.

4) Is the AMA same as KAMA?

The basis is same as KAMA. However the EMA get adaptive based on the ADX or RAVI signals. That is only when the ADX is above a certain value then the EMA behaves like KAMA. When the ADX is below the set value indicating sideways movement then the EMA becomes a straight line. Just an attempt to keep away from sideways market.

5) If the AMA gives you fewer whipsaws, then should you not be using AMA instead of EMA in the system?

Yes , correct. I will post the variation of MABIUTS with AMA soon. The problem here is because of the nature of its use (With ADX) the system becomes suitable for only long trades. However it will definitely keep you away from downwards market.


Hope I have provided some clarity. Otherwise Feel free to ask

Warm regards

Karthik

 

[gobatman2001]

Dear Amit

Thought you would have switched over to Ami by this time …


Warm regards

Karthik

Hi! Karthik,

I am so used to Fibotrader now, that it's difficult to switch. I had chewed Soumya's brains to get to where I am. Now, if I switch, you know who's brains are going to get chewed. Just kidding.

Have understood all the points except Point No.4. Whenever you have time, if you could explain a little more in detail, it would be helpful.

So, is EMA better or KAMA???

In the meantime, take care, cheers, THANKS and GOD BLESS ...

Warm regards,
Amit