> There are 2 tension indicators. Tension and Extratension. What are the > differences between those two?
ExtraTension is experimental. The idea is to apply the Tension indicator to multiple scales. For example, if Tension(10, 100) performs well, and Tension(50, 500) performs well, you may be interested in how the combination of these two performs. > When i look at the formula: tension = (fastBalance - slowBalance) - > (fastPrice - slowPrice) > As prices rise, there are less and less buyers willing to pay for > higher prices, consequently fastBalance will be more negative than > slowBalance --- the term (fastBalance - slowBalance) will result in > negative number. fastPrice will be higher than slowPrice and the term > (fastPrice - slowPrice) will become positive. Overall when price rises > tension will turn to negative, please correct me if i'm wrong. > Yes, that's correct. > Is it right to say that the strategy is to go short when tension is > really negative and to go long when tension is really positive? Yes. > Defender.java and TensionSeeker.java are the strategies that use > tension indicator. Which one has better performance? Depends on how you measure performance. TensionSeeker produces greater net profit, Defender produces greater profit factor, Kelly, and PI. On the risk-adjusted basis, Defender is superior. > One last question: Based on the example from your code, how do you > determine your fast,slow,entry, and exit parameter value? > That's what the optimization is for in JBookTrader. Optimizer iterates through different combinations of parameters, runs the backtests with these parameters, and sorts the results. You can evaluate these results by looking at the optimization maps in JBookTrader. The JBT manual explains this in detail: http://docs.google.com/View?id=dfzgvqp4_10gb63b8hg -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
