Good (Saturday) afternoon everyone.
kaalilaatikko:
Well: all I can say is WOW!!!
It's quite obvious that there are MAJOR differences between the 'smoothed' and 'unsmoothed' ADX/ADXR to the point where it's obvious that using the 'unsmoothed' ADX/ADXR is quite possibly signalling the incorrect trading system to be using at a given time i.e. in many cases the 'unsmoothed' may be signalling the use of (for example) the RTS whereas the 'smoothed' ADX/ADXR is signalling the use of one of the trend following systems (and maybe so far THIS is why Randon's RTS trades are not turning to profit as speedily as he would like). Of course it's also very obvious that the 'smoothed' ADX/ADXR cuts down on the number of 'whipsaws' given by the DMS.
Nice work!!!
There is just one thing that is concerning me though (and I'm not sure if it will affect the 'bigger picture' of things):
kaalilaatikko:
You'll notice that my 'unsmoothed' ADX/ADXR starts on day 14 right from the beginning of the chart. Yours does as well BUT you'll notice that the ADX/ADXR are not being calculated correctly for (I would imagine) at least the first 42 bars. Now I know WHY this is happening BUT are you sure that this is not affecting the indicator from 'way back then' BECAUSE remember now that (because you're 'smoothing') every last bit of data is being taken into account (unlike the 'unsmoothed' version where anything prior to a 14 day period is being ignored). Actually: OBVIOUSLY it's affecting the current data BUT just how much of a difference this makes to the current data IF IT'S A FULL CHART i.e. 999 days I would imagine is negligable BUT if it's a relatively newly added instrument where the chart is NOT a FULL CHART then the difference will be pronounced (and as a matter of fact the monthly charts for many of the instruments are not FULL CHARTS as yet e.g. AUD/NZD).
I'm also assuming that somehow you've managed to test this and compare it to what the 'smoothed' ADX/ADXR is supposed to be in 'the book' (unlike me who ASSUMED that the ADX/ADXR that I was using was correct)!!!
|