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>Date: Mon, 29 Sep 1997 09:10:50 -0500
>From: Lionel Issen <lissen@xxxxxxxxxx>
>Subject: Re: Fw: Vidya and other Chande/Kroll indicators
>In-Reply-To: <199709282047.FAA17170@xxxxxxxxxxxxxxxxxxxxx>
>
>Rick:
>
>Thanks for your comments. After the discussion of how WOW (Market
Arts)screwed up thier system analyzer, and because of Equis' experience, I
would not have expected such a gross boo boo. Perhaps they are not having
the program checked by traders who have the skills necessary to check out
the correctness of the program.
The previous e=mail got sent inadvertantly before I finished it.
Lionel
>
>At 05:46 AM 9/29/97 +0900, Rick Mortellra wrote:
>> Hi Max,
>>
>>The MS interpretation of Chande's VIDYA indicator can be found under the
>> built-in VMA moving average. HOWEVER, EQUIS BOTCHED THE WHOLE CONCEPT AND
>> IT IS COMPLETELY SCREWED UP!
>>
>> To see what I mean simply plot a SMA, EMA, and the VMA of any security
>> using the same "period" input for each. Logically, the VMA should be the
>>most sensitive, almost hugging the price bars. But as you'll notice MS's
>> VMA is the least sensitive. In fact, it's downright dead!
>>
>> Further, the fact that MS even asks for a "period" input for the VMA is
>>dumb, since the "period" by definition is supposed to be VARIABLE anyway.
>> The only inputs required under Chande's formula definitions are for the
>> "volatility index" and a scaling factor. MS says it has fixed these as the
>> 9-period CMO for the index with a scaling factor .78, so no inputs should
>> even be required. Finally, a quick glance at the built-in formula given in
>> the manual shows Equis didn't even get the scaling factor part right.
>>
>> Fortunately, the VIDYA is pretty easy to build and in MS 6.5 the new
>> "input" function lets you play around with the scaling factor without
>> rewriting the formual each time. Changing the period of the volatility
>> index doesn't affect the average significantly. Nor does using different
>> variables for the index. Afterall, it only varies from 0 to 1 anyway.
>>
>> I've discussed this with Equis tech support when 6.0 first came out, and
>> they've recluctantly agreed the VMA might be implemented wrong but
>> suggested I contact Chande myself to check. Yeah, right! Too bad, because
>> the VIDYA concept minimizes the time lag problems of a crossover system,
>> and lets you grab more of a price move.
>>
>> Hope this helps,
>> Rick Mortellra
>> Tokyo Japan
>>
>>
>>> ----------
>>> > From: Max Turner <m.turner@xxxxxxxxxxxx>
>>> > To: metastock-list@xxxxxxxxxxxxx
>>> > Subject: Vidya and other Chande/Kroll indicators
>>> > Date: Sunday, September 28, 1997 8:07 AM
>>> >
>>> > List'rs
>>> >
>>> > Has anyone programmed the indicators from Chande and Kroll's book (The
>>> New
>>> > Technical Trader) into Metastock formulae? In particular I am
>>interested
>>> in
>>> > VIDYA and the Stops indicator at the end of their book.
>>> >
>>> > Nowadays many authors give the formulae but in this interesting book
>>they
>>> > give the general formulae only.
>>> >
>>> > Would appreciate any replies.
>>> >
>>> > Thanks in advance.
>>> >
>>> > Max
>>> >
>>> >
>>> > K
>>> >
>>
>>
>>
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