nicholas
in the last few days i have mentioned the 89.3.5sto aka willr89 as a component of the powertool. after which, i mentioned the likening of the relationship between that indicator and the macd.i am in the process of incorporating a series of macd's into the powertool system, a few more components of the powertool consist of plotting a linreg26 on the macd to assist in its intrepretation. i use a mo55 as another intermediate indicator in the system. a mamlr89 is also powerful in its intrepretation, a sto 13.8.8 as well as sto 39.3.5, a stochrsi 34.13, a linreg21, an mfi 89,ultimate 3.5.8 and 7.14.21, also included are several cci's, the most important two being 13 and 89.these indicators can be used not only with numeric readings but also trendlines in their intrepretations.there are others i use but i feel these to be the more dominant. i also use some of the real short term indicators often mentioned here to confirm a particular entry. what this does,i feel, is create a short/intermediate term dynamic in conjunction with an intermediate/long term dynamic that often results in a nice run.entries and exits are based on the macd, however. the original signal was to wait for the macd to cross. i am now accelerating that signal to incorporate the knee at the bottom of the macd,(ie macd today greater than yesterday, yesterday less than two days ago) the additional risk can be managed by using a recent low of price(usually 2-3 days prior) in the last few days as a stop, and currently not to exceed 6-8 percent(originally 10). once the stock starts moving, exits can be handled several ways depending upon your timeframe and investment style, the top knee of the macd can be used as one method, trendlines and moving avgs a couple of others. there is a history of the powertool on the thread with the original signals and exits. these are the most recent statistics when performing that study...
percent of stk...amount of volatility in pct...cum pct of stocks at volatility measure.
2.4390 ... volatility less than 5
26.8293 ... between 5 and 10 volatility>5 97.56
29.2683 ... between 10 and 20 volatility>10 70.73
12.1951 ... between 20 and 30 r>20 41.46
7.3171 ... between 30 and 40 r>30 29.27
9.7561 ... between 40 and 70 r>40 21.95
12.1951 ... greater than 70 percent
21.1538 ... failure rate=f+c/f+c
18.9655 ... failure rate=f+c/f+c+holds
the avg return was 20.8769 holding period 9 days,
doubtful that will ever happen again, but it was an encouraging study.
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