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Politics : RAMTRONIAN's Cache Inn -- Ignore unavailable to you. Want to Upgrade?

To: gammaray who wrote (5355)	5/2/1998 11:09:00 AM
From: Gordon Quickstad	Read Replies (1) \| Respond to of 14464

The Ultimate Oscillator looks interesting. If I could get the formula, I would backtest it. Do you know if it's proprietary to Bigcharts? (The name sounds homegrown to me). On those little screen charts it's hard to line up crossings, whereas there is no subjectivity in using historical data when backtesting. When backtesting, I take the close of the day where a signal is given as the buy point for the following day; this assumes that next day's open will be close to the close of the day the signal was given. In an actual trading system I would put in a market order for the next open. Selling would involve the same: a market order to sell at the next open after the signal was given. I would expect any errors in this assumption to average out over tens/hundreds of trades and leave the gains from using the basic system pretty close to the gains observed when testing. Also, very importantly, I figure in the transaction costs in the testing regime. I have lots of data starting at 1/1/90 and a fast processor and so I can go through many hundreds of symbols within a reasonable time.