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David,
On Fri, 17 Oct 1997 19:40:35 -0400, you wrote:
>You are correct in that the formula I mentioned duplicates the MPS test
>only if the commission option is set to zero. The MPS test takes
>commission into account and will not take a trade if the net after
>commision would result in a losing trade.
Imo, there is an additional "frequency effect", especially when
commission option is set to zero:
If prices move up e.g. for 10 days, it might make sense to sell after
5 days and to re-invest the basic amount of money _plus_ the profit
gained so far. (It is the same like an additional investment after 5
days.) If commission is taken into account, things are a little more
complicated, but there is also room for this "frequency effect".
I wonder, if MS' MPS optimizes this effect. It _could_ do something
like this because of its 20/20 hindsight.
BTW: What does this 20/20 mean? I would understand "20 hindsight", but
what is "20/20 hindsight"?
mfg rudolf stricker
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