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RMO Shape & Size Doesn't Matter? Why Not?
Rank:: Newbie
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Joined: 3/2/2007(UTC)
Posts: 5
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okay, maybe i'm a jackass but when i plot the rainbow oscillator it looks nothing like the RMO (on the other hand, hayseed's "rmo think alike" is damn close). i checked the code and it looks identical to what wabbit posted. besides, my MS 10 shipped with the rainbow and the code matches again. obviously i'm missing something so, wabbit, please tell me where i went astray...
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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Mea Culpa black_dog,
I have re-engineered and renamed the indicators on my system hence my
oversight about what others will be seeing on their system. I have
also tweaked my components trying to get better results from the core
functions, so I barely see the original codes any more.
With the RM system, there are four functions:
Swingtrd 1
Swingtrd 2
Swingtrd 3
Rahul Mohindar Osc (RMO)
The Rahul Mohindar Osc (RMO) code is NOT the core component of the system, Swingtrd 1 is the core of the system and is identical to the Rainbow Oscillator:
Swingtrd 1 = Rainbow Oscillator
Swingtrd 2 = 30 EMA of Rainbow Oscillator
Swingtrd 3 = 30 EMA of 30 EMA of Rainbow Oscillator
Rahul Mohindar Osc (RMO) = 81 EMA of Rainbow Oscillator
If you plot the Rainbow Oscillator and Swingtrd 1 - - they will be identical. I will re-badge my indicators back to their original names to avoid this confusion again. Sorry for any inconvenience.
Hope this clears it up.
wabbit [:D]
P.S. I suppose I should re-analyse the inner workings of the canned RM system?
I don't think it will make too much difference, we still have a volatility divided by volatility measurement, but now we are also taking a EMA of that value. The height problem is still there, and in essence the system is still a MA Crossover system.
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 4/27/2005(UTC)
Posts: 126
Location: Italy
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dear all,
Based on the very useful information provided in this forum, I have designed a system test to evaluate the RMO system. I have evaluated to standard 3 condition entries against two neutral scenarios: a) exit after 10 days (using the inactivity test in system tester) and b) using the value of the first weekly pivot point after entry (based on the following formula:
ExtFml( "PowerPivots.Pivots")>=2 or ExtFml( "PowerPivots.Pivots")<=-2).
The test has been run on Nasdaq 100 stocks 1250 bars back. The results are summarized below and compared against random entries and similar exits (entry at market at next day open; 100% capital invested):
RMO system:
10 day exit:
Long only:
average return: 70%
success rate: 53%
profit/loss ratio: 1.2
short only:
average return: -49%
success rate: 44%
profit/loss ratio: 0.7
first Weekly pivot:
Long only:
average return: 14%
success rate: 48%
profit/loss ratio: 1.2
short only:
average return: -90%
success rate: 43%
profit/loss ratio: 0.4
Random entries:
10 day exit:
Long only:
average return: 172%
success rate: 54%
profit/loss ratio: 1.2
short only:
average return: -66%
success rate: 46%
profit/loss ratio: 0.9
first Weekly pivot:
Long only:
average return: 86%
success rate: 50%
profit/loss ratio: 1.2
short only:
average return: -43%
success rate: 49%
profit/loss ratio: 0.9
The above would lead to the conclusion that the RMO system comes a poor second behind many others. Moreover, the stop loss suggested in the training session is most unlikely to improve the statistics.
Regards.
Maurizio
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Rank: Advanced Member
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Joined: 4/18/2007(UTC)
Posts: 99
Location: sydney australia
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I've got MS10, but there is no ref to RMO in the user manual. may I ask where does one actually find definition of RMO, so one can try it out oneself?
thank you
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 3/7/2005(UTC)
Posts: 1,346
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hey amory..... the rmo is covered in the smaller spiral bound manual.... my versions are v10 for qc and v10 for esignal, the rmo is on page 53 of both..... your version might be different but odds are its in the smaller manual.....
if you don't have the spiral paper copy manual handy, the same information is included in pdf form in the meta installation.... look under "help" for the "manuals".... select the mastering metastock manual.....
equis has some informitive rmo training films ..... my take on it ......h
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 4/27/2005(UTC)
Posts: 126
Location: Italy
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Rank: Newbie
Groups: Registered, Registered Users, Subscribers
Joined: 3/11/2007(UTC)
Posts: 6
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wabbit wrote:
... Swingtrd 1 is the core of the system and is identical to the Rainbow Oscillator:
Swingtrd 1 = Rainbow Oscillator
Swingtrd 2 = 30 EMA of Rainbow Oscillator
Swingtrd 3 = 30 EMA of 30 EMA of Rainbow Oscillator
Rahul Mohindar Osc (RMO) = 81 EMA of Rainbow Oscillator
wabbit [:D]
Hi wabbit, Congratulations for RMO's comprehensive explanation. But which oscillator is used in the Exit Swing Signal? Thanks, Nickless
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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I have cleaned out most of my old RMO stuff.... it never worked for me, so I never used it... The Exit Swing Signal code is password protected, and it has one other catch that prevents it from being fully analysed (see: http://forum.equis.com/forums/thread/21938.aspxt uses this in its calculations? (I am pretty positive I did some other work on this at some time, but cannot seem to find it? I might have it somewhere on my computer or I might have posted it, so do a thorough search of the Forum and see what you can find? Let's just say for now, I don't know where it is!)  Quote:
This should not be used immediately after taking a trade.
Mr. Mohindar recommends using the Exit Swing Indicator only after you have entered a trade and are profitably trending. He suggests partially exiting when you achieve an intermediate financial goal/target (such as break-even), and then using this indicator to trail your stops and/or exit at better levels.
Quote:
The Exit Swing indicator is lesser used and is recommended for fast profit
taking and to active traders.
Anything that comes with such an "ominous" warning does not rate highly in my books! Hope this helps. wabbit [:D]
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Rank: Newbie
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Posts: 6
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I've read these alerts related to the Exit Signal in "Mastering Metastock" manual. Too many exemptions for my taste also.
Thanks,
Nickless
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Rank: Advanced Member
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Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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I was doing some digging in my old RSI stuff file and came across this. Its not EXACTLY the same as the exit swing but its pretty darn close! Try fiddling with the values a bit and see if you can get an exact match. I think the periods of 10 matches the Rainbow oscilator, so any differences will be in the RSI length and the MA length, or a combination of both? I added the 25 and 75 lines to make this plot look the same as the other one, but at least you can use the FmlVar() with this code! Code:
x:=RSI(14);
prd:=10;
smooth:=3;
num:=x-LLV(x,prd);
den:=HHV(x,prd)-LLV(x,prd);
ind:=Mov(100*num/den,smooth,S);
{plot/return}
25;75;ind;
Hope this helps. wabbit [:D]
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
Was thanked: 16 time(s) in 16 post(s)
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I suppose I should have included a DBZ error check, it's bad practice not to... Code:
x:=RSI(14);
prd:=10;
smooth:=3;
num:=x-LLV(x,prd);
den:=Max(HHV(x,prd)-LLV(x,prd),0.00001);
ind:=Mov(100*num/den,smooth,S);
{plot/return}
25;75;ind;
wabbit [:D]
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Rank: Newbie
Groups: Registered, Registered Users, Subscribers
Joined: 3/11/2007(UTC)
Posts: 6
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wabbit wrote:Code:
x:=RSI(14);
prd:=10;
smooth:=3;
num:=x-LLV(x,prd);
den:=Max(HHV(x,prd)-LLV(x,prd),0.00001);
ind:=Mov(100*num/den,smooth,S);
{plot/return}
25;75;ind;
wabbit [:D] wabbit, I've tried some combinations of RSI period, prd, smooth and moving average type. I've also considered that the first exit signal bar occurs in the 24th bar of the original stock chart. The best match I've found was with: RSI (13) prd=10 smooth=3 moving average type: simple It's a best match, not a perfect fit. Thanks for your help. Nickless
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 4/18/2007(UTC)
Posts: 99
Location: sydney australia
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Thank you Hayseed. reckon I must have overlooked your reply to my enquiry, yes I've got the spiral-bound manual & yes, found out everything & more!
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Rank: Newbie
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Joined: 8/2/2006(UTC)
Posts: 4
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I wonder why Mel Widner had not sued the pants off Equis and Rahul!
There must be some loophole in the law, me thinks. I better get busy calculating moving averages of some existing stuff for equis to pack and sell under my name as an exciting new Product.
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