murray t turtle
Registered: Dec 2001
Posts: 6268 |
01-18-12 07:07 PM
Partial/delayedQuote from spindr0:
All technical indicators are have usage deficiences.
For example, If MA components are long, crossovers are late in/late out. If short, it's whipsaw city.
Bollinger Bands are volatility measurements. Using them for exit points will be very variable because in more volatile times the bands are wider and therefore so too will be your stops.
Then test it on other data sets.
While you're likely to get some terrific results for individual back tests, you're not likely to find that they're effective because they're merely hindsight views telling you where you've been and the optimal periodicity of MA's, etc. varies from UL to UL and you'll never know what that is going forward.
What you'll eventually find out is that trend following indicators work in trending markets and oscillators will work in oscillating markets but neither will work in the other market... and there's no indicator that will tell you which one you should be using. 
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Good points,Dr. SP
1a]I like Mr John Bollinger;
he noted stocks are like sheep, they like to travel in herds/sectors But frankly Mr. Jabaz ,your Bollinger exit rule most probably gets you out of a trend much, much too early.[MSFT in uptrend 1990s,MSFT in downtrend 2008/downtrend2009]SPY, SLV,silver GLD...BAC, C.............................................................
1b#50] Two months or 50 days is a great time frame i use it much.Mr Bill O'Neill/IBD likes it also. But actually 200 days is more important. For example liquid QQQ & QQQ call options looks like a a buy for sure, on any time frame today??? But i wouldnt buy calls , because the all time high is a $120 area.[50% off QQQ$120 level is $60 +/, not a prediction]
However if a relative wants to give you or me a late Christmas gift, QQQ near/in the money calls would be a good gift But be ready to sell around $60.58/+ or 59.778 area. Not a prediction.
PS. Books are a good buy, most maybe returned if needed.Partial disclosure derivatives are not suitible for all investors& I may,or may not have a position in something noted.LOL
Wisdom is profitable to direct.
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