Forum Archive Index - April 2003

[Phyllis Bergquist <phyl@clear.net.nz>]

Ummmmmmmmmmmmmm    dunno about absolute favourite.   But under evaluation
for sure.   If only I knew how would send you a base weekly chart showing
his four stages.   I'll have a word with my Computer coach.....    P
----- Original Message -----
From: "Phaedrus" <Phaedrus@techemail.com>
To: <Sharechat@sharechat.co.nz>
Sent: Wednesday, April 09, 2003 11:17 AM
Subject: [sharechat] TLS and Chart


> Bill,
>      Here is a list of just a few of the many parameters that can
influence the choice of a system:-
>     Time available
>     $$$ available
>     Preferred trading frequency
>     Risk tolerance
>     Stress tolerance
>     Individual personality
>     Financial situation
>     Age, personal circumstances, etc. etc.
>  It is only to be expected that almost everyone comes to a different
conclusion as to their preferred system and thus tools. Even the same tools
can be used in many different ways, depending on your objective.
>
>  Conventional use of the standard 12/26/9 MACD with TLS would have
resulted in 51 trades over the 5+ years of the chart. 34 of these would have
been losses, leading to a 28% loss overall. Another popular choice of
parameters is 5/34/7 - use of these settings would have led to a 51% loss.
Optimising all three parameters results in a small profit, but the standard
MACD is still markedly inferior to many other indicators that could be used
with this stock. Don't write off the MACD because of these figures though.
For example, some people look for divergences between prices and the MACD
Histogram. Such signals are much less frequent and much more reliable than
the standard MACD crossover signals. I do not use the MACD at all, but you
will not find me criticising Phyllis for choosing it as one of her
favourites. Significantly, she is not using the standard MACD signals -
though these do suit some stocks and some traders. Not this one though!
>
>            Phaedrus.
>
>
>
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