Thanks for the reply Vipul.
Given the proprietary nature of the BCI indicator, it does seem to be a bit of a 'black box' - hence my desire to give it a good test on paper prior to putting capital at risk. I am running a test on each of the top 20 stocks on the ASX by market capitalisation - testing the BCI indicator and the optimisation process over a number of different periods (20 periods to 320 periods) as well as looking at the benefit of including short and long trading in the parameter optimisation process. I basically do a BCI optimisation on one day and make long and short investment decisions based on whether the trend is bullish or bearish, placing a trade at the open price the next day. At the close of the next day, I re-optimise BCI and then hold or liquidate my previous trades based on the new trends. As you infer, I have noticed some rapid directional changes in some of my trades for some stocks - I think this is called 'whipsawing'. I'm not panicking at the moment as I have only started this exercise a few days ago. One question - do you think the best way to operate is to re-optimise daily, or keep a set of parameters static ? Paul From: [email protected] [mailto:[email protected]] On Behalf Of Vipul Gupta Sent: Thursday, 22 April 2010 4:00 PM To: [email protected] Subject: Re: [BestCharts] Actual % Returns Hi Paul, You can't trust BCI. I have been trying to work BCI for a couple of months and the indicator would change on random. That is, you may take a long position based on its signal, but it may so happen that as soon as you refresh the charts, you will notice that the long signal was never there! I have lost much because of this. Regards, Vipul On Wed, Apr 21, 2010 at 9:21 PM, tzsuj <[email protected]> wrote: I'm new to Best Charts and am obviously impressed with the % returns being generated by most indicators on most stocks (run in auto optimisation mode). I'm currently running a series of paper trades using solely the BCI indicator (but using different long/short and optimisation time periods) to gauge sensitivity to the indicator's signals. What sort of annualised % returns are people getting on their trading activities (real or paper trades), on the assumption that the Best Charts indicators are the predominant tools used to generate (and act uopon, buy and sell signals. Are we talking 5% pa, 15% pa, 50% pa, 70%pa or over 100% pa ?? Paul ------------------------------------ Yahoo! Groups Links
