Here's my interpretation of DNNS expressed as a binary system. All the indicators are the same as the one I posted earlier today, but this one is binary. The exit is based on a signal that Henry Brookins uses, not on exits that Dave Evans suggested. The entry is an interpretation of what I thought Dave said at TAINJ, and I may be wrong, so please take all this with a grain of salt. It does appear to test well with some stocks, though, whatever it is. Some of the elements of the formula may be redundant or unnecessary -- this is really just an initial effort:
Enter: fml("DNNS")=11
Exit: mov(c,9,e)<mov(c,21,e) and ref(mov(c,9,e),-2)>ref(mov(c,21,e),-2)
DNNS:
if(fml("StochRSI")>30,1,0) +
if(fml("StocRSI(8,5)")>30,1,0) +
if(slope(fml("StocRSI(8,5)"),3)>0,1,0) +
if(fml("MACD (8/17/9)")>0,1,0) +
if(fml("InSync Indicator")>50,1,0) +
if(fml ("Dahl's primary trend")>0,1,0) +
if(slope(fml("Dahl's Primary trend"),3)>0,1,0) +
if(SAR(.02,.2)<C,1,0) +
if(slope(SAR(.02,.2),3)>0,1,0) +
if(OBV()>Mov(OBV(),40,S),1,0)+
if(fml("DNS")>=5,1,0)
All the components such as InSync, StochRSI, MACD (8,17,9) can be found at:
members.aol.com
Other entries and exits could be explored, of course. Perhaps an exit could involve DNNS falling to a certain level. Or maybe the entry point could be 10, for example. I haven't tested these ideas yet.
Sorry I'm cramming up this thread with all these notes on DNNS. I was tremendously impressed by Dave's talk, and even more impressed when I applied some of the things he said to my own trading over the past two weeks. So I've been consumed with trying to transform his step-by-step approach into a system resembling DNS. But that may not be what Dave intended at all. The beauty of his new system may be precisely that it's not one formulation, but a step-by-step approach to indicators that also involves eye-balling charts. That may wind up being the conclusion after all is said and done. I don't know. If that's the case, you shall have my head on a platter, garnished with the uesless formulations that have spilled from it.
Brooke |
