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Hello Bob,
Friday, December 21, 2001, 10:44:32 AM, you wrote:
BF> Most fixed point-values of stops, etc., can be adapted by relating
BF> them to the price or the volatility with measures such as
BF> AverageTrueRange.
Bob, what is adaptive coding?
1) buy at (a price + average true range) stop;
2) when occilator is at extreme do things like exit position, tighten
the stops, or do not trade any more, or reverse the position. (ex. ADX
at extreme point)
3) shares to trade next = ShareCnt/(TR*BigPointValue)
4) exitlong at breakeven(average true range*.8) stop;
5) is mkt trending relax the exit criteria.
6) in general, use mkt strength oscillators to guide the entry and exit values
Am I missing the idea? Would you site some relevant examples?
BF> A "fully developed" autopilot includes code to handle hundreds of
BF> special cases that occur only rarely. A fully developed trading
BF> system that can adequately handle 99% of the cases with adaptation to
BF> changing market characteristics, intelligent bet-sizing, risk
BF> management, crisis stops, etc., might be several pages of code.
So is the a successful system? Or is this curve fitting? I ask
because my style of developing a system is as you have described,
well maybe. Typically, 10% lines to setup oscillators and stuff, 10%
lines to enter market, 80% lines to exit. Or, simple "adaptive" entry, general
"adaptive" exits, special case worst case scenarios, etc.. These kinda of
air-o-plane certainly does not fit the idea of "the simpler code the
better the system". Please comment.
How do I know that I have not curve fitted? That is the question!
Is the only answer, time will tell?
--
Best regards,
Ernie mailto:ebonugli@xxxxxxxx
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