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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: Jack Jagernauth who wrote (13329)10/26/2000 7:57:53 PM
From: Jack Park  Read Replies (1) of 18928
 
Hello Jack,

I have often thought about this very problem. One idea that crops up occasionally is to tie the buy and sell safe values to something along the lines of a so-called 'stochastic' indicator in which you have a trading rule something like: if the stock gets way up into the overbought region, lower your sell-safe to delay buying back on the hunch that the stock will do a lot of selling soon. This implies something along the lines of a dynamic buy-sell bandwidth, something that we tend to leave 'by the book' or just tweak a little. My experiments with evolutionary tuning showed that those values can get tweaked quite a bit.

Cheers, Jack
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