SteveL Veteran   Posts: 262 Joined: 8/19/2005 Location: Boulder, CO  User Profile | Hi Stan, Both the 2 SystemBlock strategy, and the 1 SystemBlock strategy Using Reversing Signals are very close to the same thing. In both strategies, reversing signals are getting through faster than in the original/starting strategy. In both of these modified strategies, the reversing signal is not inhibited by the earlier signal being active for N-Bar=20 and enables the possibility of recognizing more quickly a change in direction. I wouldn't characterize that choice as an optimization. (I think of optimization as the process of letting OT run through a set of parms looking for that set which produces the best result for the input. That's not what we're doing at the moment, although I did stray into that territory by comparing PortSim results. But in my defense, I did that to see whether the strategies were equivalent over a longer period than 12 months.) The DoubleDualEMA crossover system is still firing the signal. The question is whether OT should or should not allow a reversal in the stock to be recognized ASAP, or hidden for up to 20 days. In all cases, once a trade is entered, it is not exited until the N-Bar=10 exit triggers. So, all we are currently trying to do is develop a a good entry signal. But bottom line, if you prefer to stick with the more basic strategy as a starting point, without reversing signals, I'm fine with that as this is a learning exercise, and this started as your thread. :^) Steve | |
