In addition, the higher number of trades would result in higher fee costs.
Rik Rasmussen Best Charts Yahoo Group Moderator http://groups.yahoo.com/group/bestcharts/ > -----Original Message----- > From: david_louisson [mailto:[EMAIL PROTECTED] > Sent: Wednesday, October 27, 2004 1:20 AM > To: [EMAIL PROTECTED] > Subject: [bestcharts] Re: Williams chart > > > > > Barry > > Assuming I understand you correctly, this seems unlikely but I guess > it could be possible. Results will obviously differ depending on > which stocks you are TA-ing, and the BT/AIO parameters (e.g. # quotes > etc, whether 200/400 points are being analyzed, etc). > > WMS operates a little differently from other indicators. While many > of the latter generate buy/sell signals when their plot crosses a MA > of itself, WMS generates signals when it moves both into, and out of, > overbought and oversold, areas. Look at its graph and you'll see what > I mean. This gives it the potential to generate more signals (i.e. > trades) than the other indicators. > > It is my view that if the number of trades is ridiculously high (e.g. > a buy/sell signal is being generated on average very 2-3 days) for an > indicator, then this indicator should be disregarded. > > I have just run an unoptimised TA on the UK-100 index (symbol ^FTSE), > and WMS gives the worst loss (-7.33%) out of all indicators on > a `Total Gain%' basis, whereas ROC gives the worst loss on a `per > trade' basis. MFI gives the best total gain (4.936%), while MACD > gives the best gain per trade. > > IF I then run AIO on ^FTSE, then RSI gives the best Total Gain%, and > ITA the best Gain% per trade, while DMI gives the poorest return in > each case. WMS lies somewhere in the middle. > > Would need to see your examples in order to comment further. > > David ------------------------ Yahoo! Groups Sponsor --------------------~--> Make a clean sweep of pop-up ads. Yahoo! Companion Toolbar. Now with Pop-Up Blocker. Get it for free! http://us.click.yahoo.com/L5YrjA/eSIIAA/yQLSAA/GHeqlB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/bestcharts/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
