if it helps:@qldfrog I've used both (TSI) indicators with success combing an "AND" & "OR" statement annexed to the buy condition. Using both indicators reduce false breakouts of forming trends.
A simple line of code
Using the zero-line of the "True Strength Index" (TSI) oscillator has strong trading applications, so has the "Tend Strength Index" (TSI) under certain conditions - using both indicators with filters & tuned parameters certainly adds value.
Sample Code for @qldfrog
BuyTSIsetup = TSI AND sig > 0 OR TSIndicator > 1.65;
In English
When the double smoothed (TSI) & the signal line are both higher than zero - forms the first part of the buy condition. The "OR" statement becomes an additional buy condition. So, if the "Tend Strength Index" (TSI) is greater than 1.65 (the standard measure of trend strength) is the other buy signal (but limited). Add parameters & other filters to the system & it becomes a worthy trend strategy.
Skate.
That’s all good stuff, but to be honest I’m a humble retail system trader and I can’t code that stuff into my system so don’t bother ?. Appreciate that it’s serious stuff but it’s just not on my radarNah different thing.
At the moment the market is getting smashed by inflation expectations. But there are some things which run up (and run HARD) when inflation goes up - banks for example.
View attachment 121690
The inverse correlation between the two (the fact that they move in opposite directions to each other) provides a golden opportunity if a flip in the opposite directions is only temporary like this ultra-high-tech graph I've drawn has.
You would obviously only do this if you think that the two curves are going to revert to their previous trend/what we see at the moment is only temporary though (which I do).
Timing the markets (System Trading)Jack Bogle
"If you've bought right, all you have to do is hold tight"
Appreciate the link and I'm about 40 mins in, but I am getting the feeling this is an advert for index funds highlighted by all the negatives associated with active investments/funds. There is some good stuff in there, but just doesn't seem like a balanced perspective so far. Anyway, I'll stick with it to the end.Learning to understand
I don't often post links to videos but I'm suggesting you watch the YouTube video below - it might be the best 82 minutes that you can invest in your trading education.
Generalisation of the content
The content is important but not in-as-much as the underlying methodology & thinking behind the specific content. If you are truly committed to making money in the markets - this video is in the must-watch category.
Video Length (1:12:23)
I'm sure most will pass on the opportunity to view the video because of its length. Most would rather read one-liners because it's easy & requires little effort. Reading a book or watching a video requires a tremendous amount of concentration. People by "human nature" are just like water & as water tracks the easiest path so do people. Self-education is lacking with most today, they want everything handed to them because they haven't the time to learn.
The 12-step recovery process of trading
Skate.
Appreciate the link and I'm about 40 mins in, but I am getting the feeling this is an advert for index funds highlighted by all the negatives associated with active investments/funds.
Generalisation of the content
The content is important but not in-as-much as the underlying methodology & thinking behind the specific content. If you are truly committed to making money in the markets - this video is in the must-watch category.
There is some good stuff in there, but just doesn't seem like a balanced perspective so far. Anyway, I'll stick with it to the end.
Got to the end. I thought they did a good job on the high-level overview of the statistical properties. The point they made that I think people would do well to remember is that "risk is what generates your return". Thanks for posting.Advert for index funds
I made reference to this in my previous post. The underlying methodology & specific content is important - the self-promotional part of the presentation isn't.
Anyway, I'll stick with it to the end
Good work!
Skate.
oh and I thought the actual ticker tape from the 29-32 crash was very cool.Got to the end. I thought they did a good job on the high-level overview of the statistical properties. The point they made that I think people would do well to remember is that "risk is what generates your return". Thanks for posting.
Investing when there is a pricing mismatch
Historical evidence & previous trading experience of respected traders guide us - how "extraordinary" returns can be achieved when investing when there is a pricing mismatch.
There are alternativesI suspect that it is the wrong market environment for a BO system. A BO system is a real bull market system. The current market has moved from Bull to neutral, or even possibly a very early Bear. We won't really know until a little further down the track, but either way, now is time to play defence.
jog on
duc
There are alternatives
When systems are not behaving as expected (due to market conditions) - value investing can be the alternative. (rotation of strategies)
Skate.
Two responses to this:
(i) absolutely have at least 2 systems, one for bull and one for bear as a minimum; and
(ii) is 'value' a bear market system?;
(iii) if so, is it combined with some version of $cost averaging or are you still operating some form of hard exit?
I have seen the posts on the value system. Is this a 'technical' scan of 'value' or are there fundamental screens added to the technicals? I have never seen a purely technical scan for value. It is always combined with fundamental screens. Even then, you should actually check that the numbers provided in the financials are legitimate. There was the instance of a honey maker cooking the books, outright fraud, that was punted as a 'value' stock.
jog on
duc
I personally love the good old discretionary "system" which just rolls along with the punches and is always adapting on the fly, as is required by the ever changing market dynamics...IMOThere are alternatives
When systems are not behaving as expected (due to market conditions) - value investing can be the alternative. (rotation of strategies)
I personally love the good old discretionary "system" which just rolls along with the punches and is always adapting on the fly, as is required by the ever changing market dynamics...IMO
I have never seen a purely technical scan for value
Terminology can at times muddy the waters (or a post). When I talk about "value investing" I'm referring to investing in mispriced securities. I've never had much joy trading "mean reversion systems" for a couple of reasons (1) short holding periods (2) associated high "commission costs" but that's not to say that we can't build on the premise of the idea (not the idea).
Scanning for value
For the technical traders, I use 3 indicators that look for mispricing. Using the 3 indicators in conjunction with each other paints a picture. The picture is incomplete until a directional move is confirmed. (that's what I'm after). Index selection, strict parameter setting, stringent filters, & PositionScore defines the confirmation. Admittedly this type of strategy delivers infrequent signals. (downside)
I use 3 Indicators
There are just three indicators I use in the "Bee Strategy" (MACD, RSI & StochD). By folding indicators back on themself are self-confirming (double confirmation for a better word). Only the (StochD & MACD) are used in this manner. The RSI is the final arbitrator. Simple, effective & easily implemented.
Skate.
Ok, now you have me really nervous. I won't go into detail, but ugly. How is this mispriced?
A bit of schadenfreude from this chart
@investtrader this "perceived value" style of trading is not dependant on a "sustained rally" but buying in the "hope" that sometime in the future the price will go back to the mean - using our trading experience (the Bee Strategy). I imagine there will not be a trigger for upside volatility in the short term & having money sitting in cash is unproductive. Making large investments in quality shares at a lower price has three benefits (1) Price appreciation over time (2) Dividends being paid along the way & (3) Idol money being put to work.
Two recent purchases
I have recently purchased $200k of each (1) BHP & (2) ANZ for the three reasons I mentioned above.
I'm posting about one of my filters (the "GTFO" Filter)
I've exited all my positions (28th February signals) & now I'm in (100% cash) sitting on my hands these last few weeks. The last few weeks have highlighted the importance of an "exit strategy" & why the timing of an exit is so critical. I thought it would be appropriate to make a post about the added protection I have built into all my strategies, the "GTFO" filter.
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