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Kevin,
You have it!
Too often people will optimize for the wrong reason and in the wrong
way. As Big points out curve fitting is not what you want. Steve's
method is raw and to the point. My take was at what point can I trust
the signal that I have gotten from the indicator/oscillator that I am
using.
Lookback periods are really more about timeframes. Yes, we can
certainly optimize a lookback period but I think we should also
realize that in another timeframe an optimized lookback period will
not perform the same.
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "Kevin Howard" <kjhoward@xxx>
wrote:
>
> 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>
> > <mailto:equismetastock%40yahoogroups.com>, pumrysh <no_reply@>
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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