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To: Arik T.G. who wrote (29230)	11/23/1997 8:26:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

Arik, If you dont my my interjecting. I also use the 5 day MA in my calculation for the short-term analysis at times. As for the other MA I will change the parameter from 10 up to 25, and watch how and if there is much of a change. So my 5 day MA is the signal line and the the longer MA is the base line or what ever you want to call it. Mathematically, the shorter the longer MA (BASE MA) is the earlier the earlier the signal. I have also noticed that the BASE MA works best in the 15-21 day range which is very close to your standard of 5/21. I will use many other indicators to confirm each other and never make a decision on only one technical indicator. If you like using Moving Averages, have you tried using the MACD, which is basicly based on the same data. I prefer the MACD with at least 2 moving averages along with the histogram. Sorry to intrude, but your comment on MA was interesting. Seeya

To: Arik T.G. who wrote (29230)	11/23/1997 11:29:00 AM
From: Tom Trader	Respond to of 58727

Arik, nice to hear from you I shall be pleased to test the system that you suggested--it seems an easy one to write. Hopefully, I'll be able to do it before I go out of town for Thanksgiving--if not, I will certainly do it when I get back on Tuesday. As a point of clarification you are looking at a simple cross-over system--am I right?? Also, could you advise me as to which index you would like to use for testing it--I would suggest the SPX or the OEX. I will post the results here so that others can get the benefit of the results--if that meets with your approval. Regards

To: Arik T.G. who wrote (29230)	11/23/1997 4:01:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 58727

Arik; RE:" Moving Averages..." The Japanese traders are using 5-, 9-, or 25-day averages for short term trading. For longer term traders, the 13-, 26-week or the 75- and 200-day moving averages. The Japanese use dual moving averages in which they compare short and long term averages on the same chart. When a shorter term MA crosses a longer term MA to the upside, they call it a Golden Cross {bullish}. When the short term MA crosses below the longer term MA, they call it a Dead Cross {bearish}. -Steve

To: Arik T.G. who wrote (29230)	11/23/1997 11:20:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 58727

Arik--on the cross-over system I tried a first pass on the cross-over system that you suggested using the SPX; I tried it over a period from January 90 to date and also from January 1994 to date. In the case of both periods the system produced impressive results for trades on the long side but lost money when it came to trades on the short side; the net profit was good for the period from 1994 but not impressive for the period from 1990. If you intend using the system you may wish to consider using a filter to help you establish a trend and then take only the trades that are in line with the trend. I did not test it with any filters but my experience with other systems that I have worked on, is that filters can help improve results. Regards