We may improve optimization results, if we improve our "logic" . There is a usual procedure in optimizations: When we optimize, MSFT for example, we use MSFT data. Is there any special reason ? I do not think so. We just suppose that MSFT data match better with MSFT. It looks obvious but not necessarily true. From the math point of view, EOD [OHLCV] is nothing more than a 5-d vector . Which vector fits better to the trading behavior of a certain stock ? I was surprised to notice that a foreign OHLCV may be more expressive than the stock OHLCV itself !! The research looks quite interesting and may expand the use of optimization in more profitable areas. The "normal" use of MSFT data for MSFT optimization is restricted to some optimal values. The "transcendental" use of some other data for MSFT optimization gives, in many cases, a visible improvement. MSFT study may "borrow" some other data, some other stocks fit better to the indicator we use. Join this fact with the [existing] directionality of the market and you will have another interesting method for this endless game. Let us see the technique: Suppose we work the single level D-ratio and we optimize DELL. D-ratio is a very simple and useful indicator. It is defined as D-ratio=1000*(H-L)/(H+L) and usually oscillates in the [0,100] region. The optimal solution is for D1=43 with 17 trades/12 winners/5losers, total Net Profit +176% since Jan2000, with a profit factor 2.84 as it comes from the AFL code 1. // Code 1: Single level D-ratio optimization Dratio=1000*(H-L)/(H+L);RRR=DEMA(Dratio,5);RRRR=DEMA(RRR,10); D1=Optimize("D1",39,10,70,1);D2=D1; F1=RRRR>=D2;F2=RRRR<=D1; Sell=F2;Buy=F1;Buy=ExRem(Buy,Sell);Sell=ExRem(Sell,Buy); Short=Sell;Cover=Buy;Short=ExRem(Short,Cover);Cover=ExRem(Cover,Short); A quick 5-day DEMA was applied to increase sensitivity and a second 10-day DEMA to avoid whipsaws. [Settings : Trade at +1Open, commission 0.5%, all stops disabled]. See Fig. 1 Searching now for better solutions, let us see from the basket of Favorites how some other data perform on DELL trading: // Transcendental use of Data in Optimizations // Application : Single Level d-ratio // by D. Tsokakis, Feb 2003 NUM=Optimize("NUM",4,0,12,1); N= WriteIf(NUM==0,"^NDX", WriteIf(NUM==1,"AAPL", WriteIf(NUM==2,"AMZN", WriteIf(NUM==3,"BEAS", WriteIf(NUM==4,"CSCO", WriteIf(NUM==5,"DELL", WriteIf(NUM==6,"INTC", WriteIf(NUM==7,"MSFT", WriteIf(NUM==8,"ORCL", WriteIf(NUM==9,"RFMD", WriteIf(NUM==10,"SYMC", WriteIf(NUM==11,"YHOO", "QQQ")))))))))))); H=Foreign(N,"H");L=Foreign(N,"L"); Dratio=1000*(H-L)/(H+L);RRR=DEMA(Dratio,5);RRRR=DEMA(RRR,10); D1=Optimize("D1",39,10,70,1);D2=D1; F1=RRRR>=D2;F2=RRRR<=D1; Sell=F2;Buy=F1;Buy=ExRem(Buy,Sell);Sell=ExRem(Sell,Buy); Short=Sell;Cover=Buy;Short=ExRem(Short,Cover);Cover=ExRem(Cover,Short); The result is impressive. It would be much better to trade DELL using RFMD [No 9] or ^NDX [No 0] or BEAS [No 3] data.[see Fig. 2] The exclusive use of RFMD [set NUM=9; ]data gives a wide range for D1 [40 to 80] to trade DELL with a profit range [+50% to +900%]. This first example leads to the main question: Are there some "model" stocks which fit better to this D-ratio version for the whole market ? Optimize the whole N100 database with the transcendental formula and see the Profit distribution per stock and level at fig. 3 CSCO around D1=39, ^NDX around D1=26 or INTC around D1=25 give good results for the whole market. [See CSCO/39 market performance at fig. 4] It is interesting to "borrow" some Data from another stock which match better to our indicator. Dimitris Tsokakis References : AFL is Amibroker Formula Language, the basic tool of Amibroker software from amibroker.com The D-ratio was designed by me some time ago and a lot of interesting applications are posted at http://groups.yahoo.com/group/amibroker/messages/ Result lists and figs from amibroker.