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RE: [EquisMetaStock Group] Re: Steve's Webinar and Optimization



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Hi,

 

                I really only wanted to say how much I enjoyed and how much I got out of the Steve Karnish Webinar which I sat through twice also.  It really opened up a few issues for me. So thank you Steve and Metastock.

 

                Ed, I do not want to answer for Big Papa, but as an interim response to your question, Steve is using the Enhanced System Tester in Metastock to establish the optimal buy and sell levels for his Oscillators. You will know that typically the RSI is plotted with two horizontal lines at 30 and 70. and a buy is signalled, under this set up, when the close falls below the 20 level and then breaks back above it. Similarly a sell is indicated when the close goes above 70 and then falls back below it, or at least that is my understanding.

 

                Now Steve is cleverly in my opinion using the Opt function in the System Tester to establish what these thresholds i.e. 30 and 70 should be for his preferred indicators for individual stocks. So when he talks about say a level of 45, that is his bottom horizontal line which when crossed above represents a buy and conversely 55 (100-45) is his upper horizontal line which when the Close falls below that, represents a sell.

 

                At least that is my understanding and I would welcome being corrected if I have it wrong.

 

                Anyway I hope this is of some help help Ed, and again congratulations to Steve and Metastock for  a great Webinar.

 

Kevin

 

From: equismetastock@xxxxxxxxxxxxxxx [mailto:equismetastock@xxxxxxxxxxxxxxx] On Behalf Of Ed Morrison
Sent: Thursday, 5 February 2009 3:33 AM
To: equismetastock@xxxxxxxxxxxxxxx
Subject: Re: [EquisMetaStock Group] Re: Steve's Webinar and Optimization

 

Hi Big Papa,

If it is not to much to ask, would you mind explaining #2. I do not
understand what is being discussed here. I sat in on the webinar but
did not understand what he was doing with this.

Thanks,

Ed

Big Papa wrote:
>
> Seems to me, by doing it Steve's way, he accomplishes two things:
>
> 1. Avoids curve fitting by reducing the dependance on look back
> periods.
>
> 2. Building a system that is more flexible and allows for
> variations, while trying to capture most of the moves. I was
> impressed the way he looked at the trigger levels, and found
> workable levels around 41, 42, 47, 48, etc, and decided to pick 45.
> I hadn't thought of looking at it that way before. By getting rid of
> some of the precision, it may actually be more robust and get you in
> and out of a trade more efficiently.
>
> A very well put together seminar, that I learned a lot from. I've
> watched it twice just to make sure I caught everything.
>
> Big
>
> -- In equismetastock@xxxxxxxxxxxxxxx
> <mailto:equismetastock%40yahoogroups.com>, pumrysh <no_reply@xxx> wrote:
> >
> > All,
> >
> > Steve's Webinar was certainly enjoyable. Just wanted to see what
> > others thought about the way he optimized. Basically he was
> optimizing
> > triggers. Recently one of our member's questioned optimizing
> lookback
> > periods.
> >
> > My own view on optimization is that optimizing triggers is a
> better
> > way of using this feature.
> >
> > What do you think?
> >
> > Preston
> >
>
>



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