rvilaconde
8 posts
msg #97323
- Ignore rvilaconde |
11/4/2010 1:23:27 PM
Hi,
After reading some books and loose some money, I am trying to tune the nost standards indicators, I would really appreciate your comments and experience regarding the most suitable parameters, at the moment I usually use:
Aaron 14
CCI 20
Average True Range 14
Bollinger Bands (upper, lower, median) (20,2) (200,2) (50,2) (26,2) (13,2) (7,2)
Chaikin’s Money Flow 21
Chaikin's Volatility (3,10)
Directional Movement Indicators +DI, -DI, ADX 14-7-28
Donchian Channels (Upper/Lower/Middle) (14,4,) (21,3)
Historical Volatility (100,1)
MACD (12,26,8) (12,26,9)
Momentum (3-7-12-13-26-50-200)
Moving Average Envelopes (similar Bollinger) (25,26,0)
Relative Strength Indicator (RSI) 14
Stochastics, Fast/Slow/Full (14,3,5)
T3 Moving Average (T3) (5,0.7)
TRIX Oscillator (15,9)
Volume Rate of Change 12
Williams %R (3-7-13-14-26-50)
Thanks a lot for your support!!
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einok
msg #97327
- Ignore einok
modified |
11/4/2010 5:03:52 PM
I believe that there are no perfect parameters for indicators. You will just end up chasing something that doesn't exist. The best way, in my opinion, is to work with an indicator in a specific time frame of your choice. When it says to enter then you enter. When it says to exit then you exit.
That way you end up doing the "right thing" in that time frame. I hope that makes sense. The bottom line is you control how much money you lose. That is really the only thing you have control over.
You can backtest an indicator with a specific time frame (ex: 10 period rsi vs 14 period rsi) and see how a stock, currency, etc. has behaved with those settings in the past. If it has performed well with one setting then all you can do is assume it will work that way in the future until you are proven wrong. Some traders will say that this is curve fitting. In my opinion, when you think about it why wouldn't you want to find the setting that works with a particular stock, etc.?
So, the bottom line is pick an indicator. Pick a stock and open its chart - for instance a 1 year time frame. Set the indicator to a specific period of time and see how the stock has responded in the past and hopefully it will continue to respond that way.
Anyways hope this helps.
Erik
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