Recent content by Jossan

The Hurst Exponent is an estimate of the predictability of a stock and can be used to find stocks where the price is not that efficient. That makes it an indirect measure of the trendiness of the equity.

Hi! Different market conditions require different indicators. For example: trend-following indicators work well in trending times when volatility is low. According to 'Curtis Faith' book 'Way of the Turtle' you can classify a time series in two dimensions: 1. The strength of the trend 2...

Most indicators have the same problems when backtesting..... Another options is to use portfolio or market scanning software and only be active in the equities whith the best score s .... With that strategy you use the score as a trading signal. *If the score is above the score for a...

Of course there are trendlines in randomly generated signals.... A completely random generated signal is called brownian motion and it is very hard to distinguish brownian walks with financial signals which carry information. Applying technical analysis to these random walks and drawing...

Well, I have empirically tried different settings for a trailing stop-loss strategy, but the results were not good - at least not as a trading strategy. It seems that there are no evidence that this strategy produces profitable results. In fact, this strategy has produces worse results than a...

If stock prices behaved like fractals it would make no difference which time frame you use. In fact, estimation of the Hurst Exponent - an estimation of the predictability of a stock, assumes that price behaviour is fractal - which is partly true. Take a look at a chart without numbers on...

A collection of dissertations in the field of technical analysis and neural networks. Some of them discuss which inputs should be used. Good luck! /Jossan

1. Generate a random walk curve in Excel (first make 1000 random numbers between -1 and 1, and then in the next column make a cumulative sum of all random numbers.) So - now you have a complete random curve which very much resembles a stock chart. Do you see any trends? YES Is it easy to...

You can really improve ordinary moving averages by making them more intelligent. The results are smoother curves and with less delay. Moving Average Plugin: Jurik's JMA Trading Software with improved Moving Average: Optimal Trader's OptAMA Expect no miracles from intelligent moving...

How much data are you talking about? 50 stocks with 1000 days data or complete data of a market? /Jossan

I'm trying Optimal Trader, which is reasonable priced ($99) and a bit technical (if you want to) Anyone else here who has tried it? It's quite new and a bit different than the others... Until now I have mostly used technical analysis for stocks and mutual funds, but I'm currently...