Here is a link to a method of trading a dynamic regression channel. http://www.enthios.com/trading/enthios_bamboo.htm I haven't tried it, but it is interesting. kempo
Interesting stuff man. I just made a regression line indicator Yesterday using the slope component of the line as an oscillator. Basically, a MA in oscillator form. Regression lines are easy enough to calculate. Sounds like the tough part would be coding entry/exit points. One other downfall is having to step through a chart 1 period at a time to get a picture of how the system would have performed on past data. Of course, that can all be done with coding too. Channel borders with an equal number of outliers might be too tight, with alot of price crossover of the border lines. Maybe use standard deviation to calculate those lines. Your outline has given me a couple ideas to use on my own Indicators. Thanks. Unfortunately, new ideas is the last thing I need right now! My current "to do" list is already overwhelming. I'm still fairly new to TA, and have a quick question. How innnovative can you get with Easy Language? I've been doing all my coding in VB. Adding an indicator like my regression line oscillator takes me about 2 to 3 hours now that my charting module is done. Can you code something like that in Easy Language? How bout man's more complicated indicator, could that be coded in Easy Language? Steevo
steevo i think if you can it is always better to program outside a standard software. it simply allows more freedom. your testing grows in the direction you find most profitable not in the direction of mass demand. sooner or later this pays off IMO. you can neither test money management stuff in TS, nor portfolios, nor refitting of parameters ... . sooner or later you probably want to get in that. honestly speaking i made that decision, so i am definitely biased ... peace
stocon, Here is a 1-min ES chart based on the 25 period regression line. The bar colors are based on the direction of the regression line. A simple strategy is to base entry or exit points on the change in direction. pretzel
Pretzel, Is this the regession channel at 0% from ensign study or is it a formula? QUOTE]Quote from pretzel: stocon, Here is a 1-min ES chart based on the 25 period regression line. The bar colors are based on the direction of the regression line. A simple strategy is to base entry or exit points on the change in direction. pretzel [/QUOTE]
pretzel test it in WL, i think you know it'll fail. i have es tick data since 97 i can test it if ya want, if u gimme a script.
tradekay; What makes you say that you know it will fail, without testing? I'm not saying that you're wrong, I just would like to know what you see on the surface. thanks, kempo
The regression line is usually used as part of a trading system, not as a trading system in itself. I know some people use the change in direction as exit point, but other indicators for entry. There are a lot of scripts using the regression line on the WL website - just do a search for a chartscript with linearregseries in the code. My computer is not powerful enough to do a backtest/optimize for 5 years worth of data - so traderkay, if you find anything interesting, I hope you share it with us. pretzel