I made up a zero lag price indicator. I call it On Balance Price. It's the close of the last bar + (close -open) of the current bar. In Easy Language the formula is Close[1] + (Close[0] - Open[0])
I am thinking of purchasing either the Jurik indicators or the precision trading indicators, Jurik has been around for a long time with a great reputation, I only heard about PLA and precision trading from reading this thread I checked out their website and I must admit that he has done an excellent comparison between PLA and Jurik JMA. Before I discovered PLA I was sold on Jurik, now I am thinking which is better I would appreciate hearing from anyone that has actually used either or both of these indicators, any comments or criticism would be appreciated
The backtest of Kaufman MA on a large portfolio (fixed fractional position sizing) is here: http://www.oxfordstrat.com/trading-strategies/adaptive-moving-average-1/ Results are average.
Folks, you can make ANY moving average have zero lag by just a few simple steps: Step 1: calculate MA of price Step 2: calculate the MA of the first MA using the same parameters Step 3: 2*MA1-MA2 = zero lag MA
The intention is to predict, through many trials, an approximate win rate, relative win & loss size, and propensity to streak when taking signals based in indicator combinations or any other observable condition. Predicting where the price will go is for gurus. *edit- regarding the adaptive average, I never found much use for it, but it looks great on the chart.