[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

[EquisMetaStock Group] Re: Here's an SPY trading System (question)



PureBytes Links

Trading Reference Links

I'm not a programer and I'm trying to figure out how this formula works.  

when you use the command >lowest(c)< I take that to mean the lowest
close.  But how many closes is it looking at? It appears to me that a
value of 1 or -1 is being applied depending on if the close is 4%
above the lowest close or 4% below the highest close, but I'm not sure
how far back the system is looking. 

If somone wouldn't mind a very brief explananation of what that
program is doing along with the Close issue I'd appreciate it.


--- In equismetastock@xxxxxxxxxxxxxxx, manohohman <no_reply@xxxx> wrote:
> Roy (code refinement) and I (theory and application) took Zweig's old 
> 4% indicator based on the Valueline Geometric Index, updated it, 
> added a twist to it and refined it for trading the SPY Daily.
> 
> Here's how it works. 
> 
> 1. Instead of the Valueline Geometric Index, this system uses the 
> Valueline Arithmetic Index. (This is an important difference!) This 
> index is $VLE on Esignal. (I don't know what it is on whatever free 
> service you've found so don't ask me.) 
> 
> 2. Once you've opened that Index on a daily chart, color the price 
> line (not bars) red, create the following expert, and apply it.
> 
> Highlight Code Green
> 
> X:=If(Cum(Ref(C>Lowest(C)*1.04 OR C<Highest(C)*.96,-1))=0,
>  If(C>Lowest(C)*1.04,1,
>   If(C<Highest(C)*.96,-1,0)),
> If(PREV=1,
>  If(C<HighestSince(1,PREV<1,C)*.96,-1,PREV),
>   If(C>LowestSince(1,PREV>-1,C)*1.04,1,PREV)));
> I:=Cum(1)<=2;
> State:=BarsSince(X=1 OR I)<BarsSince(X=-1 OR I)+(Cum(X=1)=1);
> State;
> 
> 3. Since March your price line should be green, except for two red 
> down turns. 
> 
> 4. To this chart apply a simple 20 ma. 
> 
> 5. Open another chart of the SPY daily. Create a new window on the 
> Valueline chart, copy the SPY daily and paste it into the new window 
> on the Valueline Chart. Close the SPY chart.
> 
> 6. Here are the trading rules. You must follow them exactly. A buy 
> signal is created when either the price line turns green or crosses 
> the 20 dma. You take which ever signal comes first. It doesn't matter.
> 
> A sell signal comes when the price line turns red or crosses below 
> the 20 dma. It doesn't matter which comes first. You take the first 
> signal from either indicator. You sell the long and take the short. 
> If you're trading in a retirement account, you can't short but you 
> can buy Rydex, Profunds or Potomac on the short side. 
> 
> 7. To avoid whipsaws, you can use a pyramiding technique of buying 
> one third of your buyin at a time. It will limit losses on the 
> whipsaws but reduces your overall return somewhat. It's all in your 
> risk profile. You decide.
> 
> 7. Since you can't buy the Valueline Arithmetic Index you buy the SPY 
> on the Valueline entry and exit signals. 
> 
> 8. Don't apply this to any other security except the SPY.
> 
> 9. How good does it work? 
> 
> Over the last 10 years, it's averaged 22% a year, with one small 
> losing year and 40% plus gains the last 3 years. Just take whichever 
> signal occurs first, either the green indicator signal or the 20 dma 
> crossover. 
> 
> This is as simple as TA gets. Use it to your advantage. I got this by 
> paying attention to some of my systems development books. It's about 
> twice as profitable as Zweig's original method, and is about 3 times 
> more profitable than buy and hold.
> 
> Now isn't this why you bought MS in the first place. I know, don't 
> tell me, all of you arrogant wizard traders won't waste your time on 
> a measely 22% a year unless I can hang a 1 in front of the 22. No, 
> you killer TA masters are going to make buckets of money! Really, 
> well here's an article to put that theory to rest.
> 
> www.investorhome.com/psych.htm
> 
> Read this article on behavioral finance and see what arrogance gets 
> you......
> 
> This system is free, my momma could make money with it, and now you 
> don't have any excuses for losing dough. 
> 
> JO


------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/BefplB/TM
---------------------------------------------------------------------~->

To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx

 

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/