DMI/ADX consistently works

Discussion in 'Technical Analysis' started by nyc-hotshot, Aug 22, 2003.

  1. I am not sure if I can talk too much about this program listed in the above post on ET...They might ban me.....

    If you are a user of that useful program I listed above then PM me...I do not think Baron would appreciate me furthering this program anymore....


    Michael B.


     
    #271     Feb 24, 2004
  2. You mean you pointed us to a holy grail? I'll keep it quiet! :cool:

    Be good,

    nononsense
     
    #272     Feb 24, 2004
  3. hayman

    hayman

    Well guys, Holy Grail, it ain't, that's for sure.

    I went long only, as Electric Savant suggested, and this improved me at best to 44 %, with overall net profit loss. This was for Dow Stocks and SPY.

    With low-beta NYSE stocks, results were much worse overall.

    My test period, BTW, was from 1989 - present, for Daily Bars. Last 3 months of data for 1-min bars, with similar results.

    Herein lies the value of backtesting, and my investment in Wealth Lab. One cannot just look at a chart for a couple of days or weeks, and think they have a good system. Although there is slippage with these back-tests, the results will always give you a very good approximation of real-world trading.

    These studies and posts intrigued me, but I'm onto something else....Elder may be a great mathematician, but he sure as heck isn't making any money trading his algorithms......:D
     
    #273     Feb 24, 2004
  4. Hi hayman,

    Glad to hear you feel that you got a bit wiser. But why would you then suppose that Elder is a great mathematician? Maybe he wouldn't even qualify as a small mathematician. Perhaps we better put him with the other non-backtested sacred cows. :D

    nononsense
     
    #274     Feb 24, 2004
  5. hayman

    hayman

    NoNonsense,

    I always give the benefit of the doubt to all, until proven otherwise. Yes, you are correct. Elder may be nothing more than a crackpot at best.

    Thanks for your messages.

    Regards,

    Doug
     
    #275     Feb 24, 2004
  6. I tried to think what I was doing.... Your back test should buy 1/2 hour or more after the open. Also on exits too....

    Also beta was not the only criteria....I rank the stocks with an involved criteria to give me a universe that would skew the results...

    I also use a "time series forecast" and a "price envelope" for confirmation...

    Also I do not enter during a bearish general market trend(intermediate). This cycle length is 10-30 days.....

    My goal was to accomplish an outperformance of the SP500 and my entries and exits are not precision...but more of an investment philosophy....This portion of my portfolio, I generally do not think is ET material...

    Michael B.

    P.S. do not discount the use of the multiple periods I use...that you did not use in your backtest...You are very quick to rely upon your data.....




     
    #276     Feb 24, 2004
  7. kbharj

    kbharj

    I'm looking to trade DOW Futures. I've got Sierra Chart with a live MyTrack feed - What are the suggested settings for ADX/DMI+/-

    i plan to use 1 min/2 min or 5 min charts.
     
    #277     Mar 31, 2004
  8. :)
     
    #278     Mar 31, 2004
  9. NYC Hotshot great thread ....

    It's unselfishness like this that makes ET great ... thanks I owe you one.

    I've been watching it today on CSCO and easy .20 cents today.

    Is anyone trading futures with this technique?
     
    #279     Apr 1, 2004
  10. NYC - We haven't heard from you in awhile.

    I hope your doing well.

    I had one question and I was wondering if anyone else has had this experience.

    I have tracked this method for about 10 days now and it seems OK.

    I'm finding that on a 1 minute chart with a .05 target CSCO and using the red/green cross as a stop or bail. I miss out on some good moves and get chopped up allot.

    Has anyone found any other good filters to keep you in or out of these trades. ?

    Thanks....
     
    #280     Apr 8, 2004