The Magic OUT3

["Dimitris Tsokakis" <TSOKAKIS@xxxx>]

Are you disappointed from your trading system ?Apply the 
magic condition and you will be surprised !!Create first the "~OUT3" 
artificial ticker.Scan the whole N100 with
/*OUT 1, 2, 
3*/KUP=EMA((H+L+C)/3,10)+EMA(H-L,10);KDOWN=EMA((H+L+C)/3,10)-EMA(H-L,10);OUT1=C<KDOWN 
AND Ref(C,-1)>Ref(KDOWN,-1);OUT2=C<KDOWN AND 
Ref(OUT1,-1);OUT3=C<KDOWN AND 
Ref(OUT2,-1);AddToComposite(OUT3,"~OUT3","V");Buy=0;
 
The "magic" ticker is Y, defined from the 
relationY=Foreign("~OUT3","V");Let us see some 
applications.a. The MACD() crossover.We all know that 
MACD crossover fails in bearish markets.Except if we add the magic OUT3Y==0 
or Y==1.
 
The MACD crossover, after March1, 2000  is
 
<FONT 
size=2>D=DateNum()>1000301;Buy=D*(Cross(MACD(),Signal()));Sell=D*(Cross(Signal(),MACD()));Short=Sell;Cover=Buy;
 
On QQQ gives a -67%.Magic OUT3 may change it to +9.36% 
with/*Magic 
1*/Y=Foreign("~OUT3","V");D=DateNum()>1000301;Buy=D*(Cross(MACD(),Signal()) 
AND 
Y==1);Sell=D*(Cross(Signal(),MACD()));Short=Sell;Cover=Buy;
 
or to +60% with
 
/*Magic 
2*/Y=Foreign("~OUT3","V");D=DateNum()>1000301;Buy=D*(Cross(MACD(),Signal()) 
AND 
Y==0);Sell=D*(Cross(Signal(),MACD()));Short=Sell;Cover=Buy;
 
For the whole N100, the simple MACD() crossover is "extreme 
game" : -61%with 5 profitable and 96 not profitable stocks !!!With the 
magic OUT3 may rise to +3% or +9% for the respective additions.
 
B. The Stochastics 30/70 systemAnother 
nice but suffering system
For the whole N100, the "traditional" 30/70 
<FONT 
size=2>D=DateNum()>1000301;Buy=D*(Cross(StochD(),30));Sell=D*(Cross(70,StochD()));Short=Sell;Cover=Buy;
gives a -30%.Touch it with the magic OUT3 and you change 
from -30% to +30% !!
 
<FONT 
size=2>Y=Foreign("~OUT3","V");D=DateNum()>1000301;Buy=D*(Cross(StochD(),30) 
AND Y==1);Sell=D*(Cross(70,StochD()));Short=Sell;Cover=Buy;For 
example, YHOO changes from +32% to +250%.
 
So, if you still use loosing systems, you may improve their 
performance, adding Y==0 or
Y==1 or Y<2 etc to the previous Buy condition.
 
Dimitris Tsokakis
PS Are you curious for the respective magic Sell additive 
?
[to be continued]