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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Trading sheikh who wrote (7677)	10/20/2023 8:22:53 PM
From: Sun Tzu	2 Recommendations Recommended By towerdog Trading sheikh Read Replies (1) \| Respond to of 10765

The process of writing an algo, forces the person to become aware of all the dangers and nuances of the market. Even if one never succeeds in building working system, the process will be like a crash course in trading. BTW, have patience. I am hoping to be able to share some of my indicators with the public. The key hold up is figuring out how to do it selectively and protecting my intellectual property. Your typical algo, written in a high level language with a lot of built in libraries, is about 30 to 50 lines of code (excluding all the comments). The more comprehensive ones ~80 - 120 lines. I don't think I have any algos under 150 lines and many have several hundreds of lines of code. And that is only because most of the functionality is built in and I don't have to code the menial parts. Otherwise they would easily be thousands of lines. The charts I post may seem like any other, but trust me, there is nothing trivial or simple about what went into creating them. As an example, take a look at the charts below. You see that black line in the screen? I looks like a moving average, doesn't it? It even behaves like one. But it is not the kind of MA that you'd find anywhere else. This is a representative of the running total of what the best portfolio managers are making. When we go below that black line, either they jump in to buy the dip which makes the market bounce back, or they cut their losses and the market plunges. Like everything else in life and the market, it is context sensitive. Whether or not we get a market crash or a bounce is typically a function of two things: (1) how much time the market spends beneath the black line. And (2) Where in the cycle did it enter? Did the market go beneath like in the last October - January? Or did it enter near the highs as in 2022 and 2018 (and...). Study the chart below. I picked the dates where you can see both types of situations. 2022 Notice how it does not retest of sustain any time below the black line...every fund manager remains in black NOW BTW, those indicators at the bottom are your friendly neighborhood RSI and Stochastic indicators. See how jittery they look? When you are live trading with these animals you have to worry about every move reversing itself a minute later. Or you watch the market climb fast because you were unsure if you can trust an indicator with Parkinson's disease. Now here's the same chart with my indicators. I use advanced filtering to plot only the signal. The market trading is nerve wrecking enough, I don't need the noise to distract me...and no, I actually filter out the noise rather than run a moving average on it. The MA would make it look pretty, but it would take away the timing information. PS You see where we are with reference to that black line, right?