How do I accurately choose the period for indicators?

newbie003 said:
predict the exact time the market is going to be bearish or bullish in the future, for example: at X time in the future, the market will be bullish. How do they do that?
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mr newie003
Norm "calls 'em to the minute" Winski from astro trends on the line...

 
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raddo said:
newbie003:
We have a short article dedicated to the topic of picking the right indicator's parameter. It can be interesting for you:
How to choose the period for indicators
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:thumbsup::thumbsup: While I applaud at least this effort to *notice* a difference of performance in trading off of signals from indicators of varying periodicity, but I have to observe too, that by looking at *performance*, the horse is already out of the barn -- the damage is already done.

Better is to actively measure the periodicity of the market, and compare it to the [chosen] periodicity of the indicator/[signal-generator], and to minimize that figure. The performance will *follow* that.

This difference-minimization can be dynamic itself (or at least, repeated in the time available), such that the resulting system can respond to differences in market behavior. :thumbsup:
 
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tommcginnis said:

Better is to actively measure the periodicity of the market, and compare it to the [chosen] periodicity of the indicator/[signal-generator], and to minimize that figure. The performance will *follow* that.
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The person whose done a lot of work in measuring market periodicity is John Ehlers, with his MESA and autocorrelation periodogram algorithms. I have not done much investigation with either method, so I can't speak directly to performance. They are interesting ideas, however I suspect that they don't lead to superior outperforming indicators.
 
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