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Yag
Registered: Apr 2005
Posts: 10 |
05-01-05 06:59 PM
Hello all,
I am doing my first newbie attempts as far as creating (I'd even say goofying with) my own trading systems.
I have noticed that the principles that work during trending markets wont during the chop, and viceversa.
How could I express in conceptual terms (as opossed to computing terms, I know nothing about that) so a trading platform could apply one set of rules during a trending market and another set of rules during the chop?
The only idea I have come up with is requiring an initial filter, like price moving above over an EMA for a set number of periods in a row in order to apply the trend principles, otherwise apply the chop rule set. Any other ideas guys?
Cheers.
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kut2k2
Registered: May 2005
Posts: 3148 |
05-16-05 05:07 AM
Use Perry Kaufman's efficiency ratio, the perfect trend indicator.
Use the unsigned version.
If it's greater than +1/3, you're in an uptrend. If it's less than -1/3, you're in a downtrend. If it's between +1/3 and -1/3, you're in the chop. 
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John Merchant
Registered: Sep 2004
Posts: 994 |
05-16-05 05:39 AM
Just like it is always happy hour SOMEWHERE, it is always trending in SOME timeframe. Chop is totally a matter of perspective. It is like beauty. If you get close enough to a fat girl, she doesn't look fat.
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Bowgett
Registered: Jul 2004
Posts: 908 |
05-16-05 06:16 AM
Or develop two systems. One for trending market and one for choppy and trade them both. The trick is the system for trending market should not lose much in choppy market, same with the system for choppy market.
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Equalizer
Registered: Jan 2005
Posts: 1519 |
05-16-05 11:11 AM
Quote from John Merchant:
Just like it is always happy hour SOMEWHERE, it is always trending in SOME timeframe. Chop is totally a matter of perspective. It is like beauty. If you get close enough to a fat girl, she doesn't look fat.
John,
do I detect a proclivity towards females of above average girthage?
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John Merchant
Registered: Sep 2004
Posts: 994 |
05-16-05 01:10 PM
Equalizer. I get my best trading ideas from my sexual proclivities and fantasies. I rarely post sexual analogies to trading any more because I get hate mail from ET females, or at least ETers who write like women. Perhaps it is just a happy accident that I can approach trading sadistically and take visceral pleasure in winning at some one else's expense. But to your point, ever since I was ten, lo these fifty years ago, I have realized that the woman chooses. Like the market chooses. All you can do is be available and ready. Fat girls like me. What can I say? Scalps like me. In either case it's over quick and you move on to the next opportunity.
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