We are blowing out our most popular TradeStation indicator at a steal of a price! Until July 17, 2015, save over 60% off the Adaptive Indicator library. For only $49.95, you can get our latest in indicator trading technology! The adaptive indicator library automatically tunes its indicators to half of the current dominant cycle based on use of the Hilbert transform. If we look at the math for most technical indicators, their math assumes that we are using half of the dominant cycle. We use always have them tuned to this they will offer the same physical properties with the data in terms of high and lows. If we don’t adapt the indicators and use a fixed length, then we will see a shift of the indicator in terms of high and lows and price action. We will also see the lag on the indicators shift. Let’s now look at some example of using the adaptive indicator library on a chart. Are you interested in getting the latest indicator for TradeStation? This is an example of an adaptive ADX, Hilbert ADX and the standard ADX on Treasury Bonds. You will see that the Adaptive ADX turns much faster than the normal 14 period ADX. The reason why most indicators use a default 14 period is because they assume that there is a 28 day cycle, which had its origins in a lunar 28 day cycle. We can also see how the HilbertADX adaptive indicator drops below trend level when the market moves sideways after a big trend which is not the same with the fixed length one. Here is another example using corn. We can see a similar response of the adaptive ADX and the standard one. We can see that the end ends in early July and the adaptive ADX peaks about the same time just as the topping action forms. The standard ADX peaks almost three weeks later! This indicator is amazing in its predictive power. Our final example shows RSI, both an adaptive version and the standard one on corn. We can see that the adaptive RSI, which is based on half of the dominant cycle, oscillates between overbought and oversold. The standard one does not reach overbought and oversold levels for almost nine months, while the adaptive version cycles regularly. We also see that the peaks in the adaptive version do still normally lead the standard versions. The adaptive indicator library works on intra-day data, end of day, weekly, and monthly. It includes full open source code and lets you easily create your own version of any indicators you want from just following our simple template. Our adaptive indicator library normally sells for $149, but you can get it for only one-third of the price for a limited
We are only running this sales for 2 more days. Also any question about the adaptive indicator concept.
It's based on the Hilbert Transform to calculate the dominant cycle in a given market. We turn the indicators to the assumed percentage of the dominant cycle length. Most indicators default values are tuned to 14, because the assume a 28 day lunar cycle as a guess for the markets.
I think John Ehlers no longer recommends the Hilbert Transform because of too much lag in the calculation. He instead recommends the Autocorrelation Periodogram to calculate the dominate cycle.
I am actually working on a Goertzel algorithm dominate cycle written in native Tradestation code. That will be my next generation. It still works better than the standard indicators and it's only 49.95.
Interesting stuff: "One drawback of the Goertzel algorithm is that it is much slower than the Fast Fourier transform. In other words, in this case, the Goertzel algorithm would take more than 10 times longer than the FFT to compute. However, as a computation time comparison, Goertzel would take about half the time as MESA to compute those 128 frequencies. The second drawback of the Goertzel algorithm is that in order to find a frequency in Goertzel when the noise amplitude is high you need enough data so that your lowest frequency (largest period) is able to complete at least 3 cycles. This means that if we were examining daily closing prices and we wanted to find periods of 75 days and less than we would need at least 3*75=225 days of prices in order to detect that period in noisy data. The third drawback of the Goertzel algorithm is that while it can detect the frequency within the 1/N spacing it cannot detect more than one frequency within that spacing. For instance if N=20, and we are looking for a frequency between 1/20 and 2/20, the Goertzel can detect the frequency anywhere at or between these two frequencies. However, if there was a second frequency inbetween these two frequencies, Goertzel could not find it." Murray, why don't you write this in C/C++ and make it callable as a DLL ? It sounds like it would be super-slow in Easy Language or Power Language.
The reason why I trying to do this in EasyLanguage is because I want a version that works not only in TradeStation but also in Multicharts 64 bit.