[EquisMetaStock Group] Re: System Tester - Zero Lag EMA Crossover with OPT

[pumrysh <no_reply@xxxxxxxxxxxxxxx>]

arun103,

One word...lag

When you start using double and triple smoothed indicators you are 
introducing a large delay(lag) in signals. You should always ask if 
it is beneficial.

Preston



>Why shouldn't TEMA be used instead of DEMA (Zero Lag EMA) for even
>better results?

>arun103

--- In equismetastock@xxxxxxxxxxxxxxx, "arun103" <arun103@xxx> wrote:
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "Paul Harris" 
> <paul_vicmar@> wrote:
> >
> > Preston
> > 
> > So have had a chance to play around with the system test. And 
have
> > thought of an improvement on your idea.
> > 
> > {ZLEMA(Zero Lag EMA1)}
> > EMA1:= Mov(CLOSE,opt1,E);
> > EMA2:= Mov(EMA1,opt1,E);
> > Difference:= EMA1 - EMA2;
> > ZeroLagEMA1:= EMA1 + Difference;
> > {ZLEMA(Zero Lag EMA2)}
> > EMA1:= Mov(CLOSE,opt2,E);
> > EMA2:= Mov(EMA1,opt2,E);
> > Difference:= EMA1 - EMA2;
> > ZeroLagEMA2:= EMA1 + Difference;
> > Cross(ZeroLagEMA1,ZeroLagEMA2)
> > 
> > All we have done is to create two separate ZLEMAs. One which 
would 
> be
> > a short term MA and the second one which would be a long term 
MA. 
> And
> > then to use the cross function to identify the buy when one 
crosses
> > the other. 
> > 
> > Provisionally at the moment it looks to perform better than a 
> normal
> > MA crossover system. A more detailed inspection neeeded.
> > 
> > So I was thinking to combine this kind of MA system with the 
> addition
> > of another indicator by using the "AND" function. I was thinking 
of
> > using a volume based indicator that measures volume and price 
> movement
> > i.e OBV or Price Volume Trend and maybe a momentum indicator like
> > Chaikin´s Volatality. 
> > 
> > Preston, or anyone reading in, if you have advice about choice of
> > indicators to choose or how to combine the indicators together, I
> > would be most grateful.
> > 
> > Yours
> > PAUL




 
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