Actually Richard, you are close but you have it backwards. The with the Standard Calc button on, you are using the "faster" original formula that Wilder came up with, including the "fudge factor" of not doing the calculation over the complete data set each day, but add the CCI to a derivative of the previous days calculation. With the "fudge factor" (original way) you loose mathmatical accuracy. With the Standard Calc button turned "off" we do the CCI calculation on each bar, each day, all over again. This way, you keep the mathmatical "purity" of the CCI. We included the Standard Calc button for those individuals who were comparing our values to other programs that still included the "fudge factor" in the CCI. They would call us up and say that ours was "wrong". Turn that on, and it matches other programs calcuations. It is up to debate which is more accurate, but Welles has our program and he has said that he likes our calculations "better".
Why a fudge factor? On slow machines (pre 286 days) the calculation was time consuming to do it on all bars, and almost impossible to do by hand. In todays day and age, there would be no excuse not to do the calculation over all of the bars barring sticking with tradition. Some programs still use the old way, not due to speed, but because it was always done that way. We have always opted for improvement over tradition.
Just thought I would throw my 2 cents in since I knew the true answer.
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Brett Russell
Director, Technical Support
Trading Techniques, Inc. |
