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Strategies & Market Trends : Technical Analysis- Indicators & Systems

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To: F Robert Simms who wrote (2053)7/27/1997 8:18:00 PM
From: Paul Beattie   of 3325
 
Frank,

I'm back from sunny Hawaii and will catch up gradually. You asked about testing results for P-Yellow system with AMTX, MU. Using 2 years of data only, AMTX gave me approx. 1100% return (Longs only, no shorts), with 2% commissions. MU didn't do so well. Rather than total return, look at entry and exit timings. Talking it over with others at TAINJ, I understand better that some people (with much more experience than me) would have real problems jumping in when P-Yellow signals. They would wait for breakouts, etc. I have come to realize that P-Yellow is biased to trigger early and generally assumes that a small upturn is the beginning of a larger one. This is great on the LHS of the mountain, but not the RHS, and not in a basing period.

I have not spent the time to do it yet, but I think that using
5ema > 13ema would solve this problem somewhat(but would eliminate the early timing advantage in some cases).

Good luck with your explorations.

Regards,
Paul
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