RE: OddBall as a market timing tool

["Wes Williams" <softexcl@xxxxxxx>]

Dear Bill,

Yes, I did say what you quoted me as saying and I stand behind it. But you
omitted the very next sentences in both contexts, where I said:

(Thu 2/21/02 12:16 PM) "It is still imperfect but I had a friend who used it
to verify the trade he was about to take. If the RSI on the TIKI was
strongly pointing the other direction, he wouldn't take the trade until more
information came in."

I also said in the next sentence of your second quotation:

(Thu 2/21/02 1:34 PM) "Program trading only lasts for a short while and when
it starts, the TIKI will move but then return to "normal," whatever that may
be in a few minutes. So, if you were using a longer timeframe for Data2
perhaps you have a reason why? The TIKI is for day trader timing only, in my
opinion."

I thoroughly reject any idea of using the $TIKI in an Oddball fashion, which
is what you were apparently trying to do. In any case, I apologize for my
part in any misunderstanding you may have had. I think it is a valuable
indicator at times, like I said, and if you come up with some creative way
to use it other than an indicator of program trading in very short
time-slices, which is only my understanding, I would be most interested in
your research.

Sincerely,
Wes Williams

>
>
> Wes:
>
> You said (sorry about the snips):
>
> "but do this: Run an RSI against it and use that as your indicator rather
> than the TIKI per se (you won't read that in the books).... "
>
> so I ran an RSI of the ticki and tested it (it sucked):
>
> >{S&P data1, TICKI data2}
> >
> >Inputs: RL(14);
> >If rsi(Close Data2, RL) > rsi(Close[1] Data2, RL)  Then Buy;
> >If rsi(Close Data2, RL) < rsi(Close[1] Data2, RL)  Then Sell;
>
> so, you said: "were you using 1-minute bars on the TIKI or
> something else?
> Program trading only lasts for a short while....."
>
> So I ran it on a 1 minute chart (it traded WAY too much (2100+
> signals in 11 days)). I'm sure you can filter that, but why bother?
> 200 changes in trend per day...it'd drive you crazy.
>
> Just so there is no confusion about what *I'm* saying: my work shows the
> Ticki, and the RSI of the Ticki (1 minute or otherwise), are
> NOT(!) good for
> your trading health. If you have proof to the contrary please post it.
>
> Over and out,
>
> BW
>
>
>
> >From: "Wes Williams" <softexcl@xxxxxxx>
> >Reply-To: <softexcl@xxxxxxx>
> >To: "Bill Wynne" <tradewynne@xxxxxxxxxxx>, <softexcl@xxxxxxx>,
> ><mr_bond@xxxxxxxxx>, <ebonugli@xxxxxxxx>, <omega-list@xxxxxxxxxx>
> >CC: <rfurse@xxxxxxxxxxxx>
> >Subject: RE: OddBall as a market timing tool
> >Date: Thu, 21 Feb 2002 15:13:40 -0700
> >
> > >
> > > I stand corrected, it did make about $15/trade before slippage/comm.
> > > on one test of 1 minute SPH2 data.
> > >
> > > > > > > My take is the ticki is generally too noisy...
> > >
> > > The test showed 2100+ trades in 11 days,
> > >
> > > BW
> > >
> >
> >Bill,
> >
> >I would DEFINITELY recommend that you NOT use the TIKI in this way!
> >
> >Sincerely,
> >Wes