Mark Brown and his Snowball Strategy

That's about the time that many firms go into bot trading, thus making more stocks running like the indices themselves in real-time. Thus, you get more extreme readings in broad market advance issues than before.

Taking that into account, the system still performs well for another 2 years before its performance peter out. I don't think you can get this type of performance easily, especially in a publicly released system.

p.s. I sure hope my 3-days advance issues model published in Futures magazine (Jan 08 issue) will beat this record!

 

Yes! Yes! Thank you!

Perhaps you do not realize the full truth in your statement, indicators lag.

All indicators lag by virtue of 'waiting' for the next piece of data.

Therefore, since all indicators lag, they 'indicate' what? Hindsight!

Since all mechanical systems are 'indicator' based, all mechanical systems are hindsight trading!

Brilliant observation! You have figured out the truth!

 

Avi,

Correct, but if you got the talent to develop a price action based indicator that is able to mimic your discretional calls with say 75%-85% efficiency they can be useful.

Unless thinking automation, there is very little reason, if any, to use indicators.

Anek

 

Would you say your system is superior to Mark Brown's system?

 

Some indicators lag, some don't. To say that all indicators lag is not correct.

 

Really?

How is this possible?
An indicator relies on data, correct?
Since the indicator must WAIT for the data to 'indicate', it will ALWAYS lag.

 

Saw the article....well done. It's a great "twist" on using the basic advance/decline indicator the way that Mark did originally.
Your article really got me thinking about "triggers" used in trading systems and the various types of triggers. I think your research proves that the "trigger" can be as important as the basic indicator incorporated as the basis for the system.

 

Unless we are talking about Fib projection / Support/Resistance targets or something along those lines then I have to say all indicators lag.

Would love for you to show me otherwise though

Anek

 

Everything usable is based on data but there is another level of TA then RSI,MACD and such. Tools on that level have ability to predict. Based on data but definitelly not lagging.
Read some posts of Harrytrader or others who were ripped on this forum for pushing predictive TA to the forefront.

 

ones P/L indicator does not lag...... it is here and now....keep up the good work anek....you have been an inspiration to me...