Hi Dennis --

Can you tell us a little more about the indicators that you find are
leading?

Thanks,
Howard
www.quantitativetradingsystems.com


On Jan 3, 2008 7:13 PM, Dennis Brown <[EMAIL PROTECTED]> wrote:

>   Steve,
>
> I have observed many day traders. What you say is true. However,
> there is an art to it that the traders themselves don't even
> recognize. It has become second nature to them like riding a
> unicycle when they are in the Zone.
>
> It is a good idea to realize that a new person must develop that art
> first or he will just as surely blow up his account.
>
> Working with indicators does not mean that they have to be lagging
> indicators. Leading indicators are also possible to create. After
> all that is what you are doing in your mind. ;-)
>
> Best regards,
> Dennis
>
>
> On Jan 3, 2008, at 5:37 PM, scourt2000 wrote:
>
> >
> > I offer up this kind of information to help give someone what they
> > want. But, in this instance, I'd like mention what's far better than
> > any of this CCI/RSI/MACD/Stochastic/blah-blah "stuff", adaptive or
> > otherwise.
> >
> > This is what works since the dawn of trading (I'm speaking mainly to
> > you e-mini futures traders out there who are getting too caught up in
> > indicators and trying to massage them to infinity in an effort to
> > reduce your loss percentage):
> >
> > Go to a price chart, NOT an indicator. Find support and resistance.
> > Buy the stronger supports. Sell the stronger resistances. Scalp the
> > weaker ones. Trade heavier with the trend. Manage the trades.
> >
> > Your research is your confirmation. The better your research, the
> > better your real-time performance will be. If you need "momentum
> > confirmation" to get into a trade, then please never tell me that
> > you're getting in 1-2 bars "ahead of the world" because I'm 1-2 bars
> > ahead of YOUR world and what I'm doing is leading price, not
> > following it from an indicator derived from price.
> >
> > There's no follow-up to this on my part. I'm not engaging anyone in
> > an argument over this. I have seen literally 100's fall by the
> > wayside in the daytrading e-mini world, playing around with
> > indicators. The ones I consistently see still in the game and
> > trading well are the ones who pay attention primarily to support and
> > resistance from a price chart, not from some indicator.
> >
> > There are exceptions to any general rule. But your likelihood of
> > winding up in the blown-out account list is much higher by playing
> > with indicators instead of simple, common support and resistance
> > through multiple timeframes.
> >
> > --- In [email protected] <amibroker%40yahoogroups.com>,
> "scourt2000" <[EMAIL PROTECTED]> wrote:
> >>
> >>
> >> Bill,
> >>
> >> Sounds like you're interested in John Ehlers' work on adaptive
> >> indicators that he explained in Chapter 22 of his book, "Rocket
> >> Science for Traders". He took some common momentum indicators
> >> (including the CCI) and coded them up to be adaptive in
> > Tradestation
> >> Easy Language.
> >>
> >> Also, you can find a couple of articles about this at
> > tuckerreport.com
> >>
> >>
> >> --- In [email protected] <amibroker%40yahoogroups.com>,
> "bilbo0211" <bilbod@> wrote:
> >>>
> >>> --- In [email protected] <amibroker%40yahoogroups.com>,
> "Howard B" <howardbandy@> wrote:
> >>>> For this statement:
> >>>> somevar = CCI(parm);
> >>>> "somevar" will be an array with one element for every bar of the
> >>> data array,
> >>>> the value of that element the result of applying the CCI
> > function
> >> to the
> >>>> "average" of that bar ((H+L+C)/3), for the lookback length
> >> of "parm".
> >>>>
> >>>> What problem are you trying to solve?
> >>>>
> >>>
> >>> I want parm to be an array.
> >>>
> >>> What I am doing is trying to 'tune' the CCI to the dominant cycle
> > in
> >>> the market.
> >>>
> >>> Let me give you a simplistic example using moving averages.
> >>>
> >>> If you are trading a trending market (longer period dominant
> > cycle),
> >>> you want a longer period moving average to filter out the small
> >> (high
> >>> frequency) corrections that occur.
> >>>
> >>> In a trading range market (shorter period dominant cycle), you
> > want
> >> a
> >>> shorter period moving average that can react more quickly to the
> >>> shorter term changes in direction.
> >>>
> >>> I started by using the fft to estimate the dominant cycle but I
> > had
> >> a
> >>> lot of trouble coding something useful so I switched to Ehler's
> >>> estimate (using Laguerre filter, it's in the afl library).
> >>>
> >>> As crude as that estimate is, it improves the performance of the
> >>> indicators I tried it on. If I could get a more accurate measure
> > of
> >>> the dominant cycle, I am confident it would improve performance
> >> even more.
> >>>
> >>> That's why I want the period of the CCI to vary.
> >>>
> >>> I also don't see any point to include the C of a bar for intraday
> >>> charts. I use CCIa((H+L)/2,period).
> >>>
> >>> Bill
> >>>
> >>
> >
> >
> >
> >
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>
>  
>

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