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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (9497)	2/19/1999 5:07:00 PM
From: peter n matzke	Read Replies (3) \| Respond to of 12039

>The example refects if you used smaller periods of nearly 50%, you would get quicker response. Which might mean the short term indicator acts quicker, not because it is basic, but because it is short term. The compilation is not the cause, it is periods used. I have found that with systems using the exact same time periods, the system with fewer components does respond faster. the time element can be removed and the point is verified. >I can not agree that complexity is negative, a logically developed indicator is good no matter how many features it has. this is exactly my point, when you compound indicators, the end result can never be as fast or efficient as a well designed simple system. take for example insych, due to its composition of 14 separate indicators, it can never respond as fast as a single simple system. In the example of a system that generates a high percentage of winning trades, i can assuredly state that by reducing the winning percentage of trades, easing up the system i can create a sytem that will generate greater total profit, try it, you will see that it is true.

To: Richard Estes who wrote (9497)	2/20/1999 8:40:00 AM
From: Chris Parenti	Read Replies (1) \| Respond to of 12039

When placing an order to buy, most have already set their target as to how much they are willing to lose. Do most set a stop limit ? Or is it a rational fear that a market maker would drop down just to fill that order..I guess it would depend on the stock and % the limit was set at. I'm at work during the day and can't really follow the market. I'm leaning towards setting limits, where in the past I would do it all end of the day. Has anybody found any major drawbacks to setting stop limits ? Any thoughts would be appreciated Chris