Jim Dean Elite   Posts: 1059 Joined: 10/11/2012 Location: L'ville, GA  User Profile | Thanks for the encouragement, guys Caveat and Disclaimer ... ANY method of determining "Market State" is going to have "issues" since it does not have a crystal ball ... and since it's a highly subjective concept to begin with. What I've developed is a logical and mathematical approach ... no "hairy" math btw ... to identify these nine conditions in a REPEATABLE fashion. The idea is not to be "perfect" in the ID's, but rather to be "fairly close" so that backtesting can use the SAME rules as what you would feel OK about using at the Hard Right Edge. The tradeoff in the Nine Market State modelling is lag vs chatter. That is, if you bias the settings to be "reactive" (low lag) to market-state changes, then the states will change more quickly than otherwise. Actually it's sort of cool ... with one input you can "tune" the recognition of the market state to your own typical hold-time. Nuff said. | |
