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It is quite obvious that by using several sytems for the same commodity
simultaneously, you can expect coincidence of opposite signals, early exit
signals, reversals and all sorts of confusion and chaos.
My approach would be first to decide which system, A or B, is better
on the basis of my long term testing on this particular commodity.
I'd never use 2 systems for the same commodity at the same time.
I'd try perhaps to combine 2 systems and find by testing it if it works
better than A or B.
In other words, the answer is >testing<. My experience shows me that
2 opposite signals, even given by one system, mean that there is something
wrong with the system and should be corrected or sytem rules should specify
which signal to take in such case.
Jan Philipp
----- Original Message -----
From: Mervin Yeung <tinyeung@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, December 07, 1999 6:06 PM
Subject: [RT] Conflict of systems {01}
> Hi RTs,
>
> Does any RT use more than 1 trading system? What would you do if
> different systems come out with opposite forecasts?
>
> Give you an example. March 2000 cotton. If you use MA cross over, you
> still have short positions. If you use breakout rule, you probably have
> gone short but got out today because you are afraid this thing is doing
> a "false breakout". If you follow trends AND adopt "buy breaks, sell
> rallies" axiom, then you are waiting for this rally to finish its surge
> and go short again. If you like to pick the tops and the bottoms, now
> it is the time to go long. If you use "Purple System" (An unorthodox
> application of an ancient Chinese Astro. method), then cotton will shoot
> up vertically and never look back. .......etc. There are hundreds of
> systems that give you all different forecasts. No wonder is trading
> difficult!
>
> I think consciously and subconsciously, deep our mind, we must be at
> peace with our methods. For example, Norman often gave us his Astro.
> forecasts, which are often quite accurate. (In my opinion) However, I
> simply could not bring myself to trade on Astrology because I studied
> too much Physics and Math. in college.
>
> However, I always love to see Norman's forecasts.
>
> All the above are for general information only, not for trading
> purpose.
>
> Mervin
>
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