ARTICLE SYNOPSIS ...Cycles and Trading Systems by Jeffrey Owen Katz, Ph.D. This time, this Contributing Writer looks at using cycles as the basis of a trading system. In previous articles, my search for successful trading systems led me to discover a very effective development methodology: the use of genetic algorithms to find not only appropriate rule parameters, but also optimal combinations of rules chosen from a large set of rule templates I provided. Since then, my intention has been to acquire useful knowledge about the markets that may be cast into rule templates. With that in mind, I decided to explore...
BY: Jeffrey Owen Katz, Ph.D.
ARTICLE SYNOPSIS ...Dealing with Change by Adrienne Laris Toghraie Change is a part of life, and for a trader, it can be a problem or an opportunity. Here's how a trader can make sure it's not a problem. In recent times, I have received countless calls from floor traders on their concerns regarding their move to a new building and/or a new floor. Some of their concerns: Are the new pits too large? Will people be able to see the orders being placed? Will the change in the positioning of the pits and the traders upset their relationships to each other? Will traders from the smaller pits be able to see into the l...
BY: Adrienne Laris ToghraieSUBJECT: Trading Psychology
ARTICLE SYNOPSIS ...On Rising Wedges by Thomas Bulkowski As your stock rises and sector rotation becomes more pronounced, it's wise to be alert to a chart formation called a rising wedge. Rising wedges can get you out at the top before your stock tumbles. Here's a refresher on this intriguing formation. Rising and falling wedges share common traits with the triangle family. In previous articles, I discussed three forms of triangles -- symmetrical, ascending and descending triangles. Recall that symmetrical triangles have bounding lines -- one slopes upward, while the other slopes downward. In ascending triangles...
BY: Thomas BulkowskiSUBJECT: Novice Traders' Notebook
ARTICLE SYNOPSIS ...Searching for Clues with Jay Kaeppel by Thom Hartle Devising and implementing a strategy is the key to successful trading, according to Jay Kaeppel, director of market research for Essex Trading Co., Ltd. Stocks & Commodities Editor Thom Hartle spoke with Kaeppel via phone on February 18, 1997, to inquire about his favorite techniques for investing in the stock market, trading futures and options. Q: Let's start with a little history. A: Okay. My first job, after I finished college, was with an oil company as an accountant. At the same time, I actively followed the markets on the side. Q:...
BY: Thom HartleSUBJECT: Interview
ARTICLE SYNOPSIS ...Tape Reading And Daytrading Stock Index Futures by Gary Smith Tape reading isn't terribly complicated. In Reminiscences of a Stock Operator, Edwin LeFèvre said it best: "This matter of tape reading is not so complicated as it appears. Of course you need experience. ? The object of reading the tape is to ascertain, first, how and next when to trade -- that is, whether it is wiser to buy than sell. ? You watch the market -- that is, the course of prices as recorded by the tape -- that is, the price tendency." Two key issues for traders here. First, the objective of reading the tape is to discover ...
BY: Gary SmithSUBJECT: Basic Techniques
ARTICLE SYNOPSIS ...The Pring Money Flow Indicator by Martin Pring Interest rates often lead the stock market. Here's a technique to compare the yield on three-month commercial paper to the Standard & Poor's 500, creating an indicator for the stock market. Over the past several years, the concept of intermarket relationships has gained in popularity. The analyses for these relationships are calculated using the comparison of one series against another, a good example being gold against the dollar. It is possible to derive useful indicators that take advantage of these relationships. A key intermarket relation...
BY: Martin J. PringSUBJECT: Indicators
ARTICLE SYNOPSIS ...Letters To S&C Topics this month range from inflation and interest rate questions in response to the interview with Alex Saitta in the March 1997 issue to Robert Krausz's article titled "Dynamic multiple time frames.""...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Walk Forward With the Xau Bond Fund System by Dennis Meyers, Ph.D. The system developer has various optimization techniques to choose from. Here, Contributing Editor Dennis Meyers updates his previous work using the walk-forward optimization method. Previously, I examined the relationship between the Philadelphia Stock Exchange (PHLX) daily gold and silver stock index (XAU) and the Fidelity Long-Term Government Bond Fund (FGOVX). In that article, I used a walk-forward optimization technique to determine the system parameters. The data window for the research began on December 19, 1983, and ...
BY: Dennis Meyers, Ph.D.