Rank: Member
Groups: Registered, Registered Users
Joined: 2/23/2007(UTC)
Posts: 26
|
I came across this indicator on the Internet and it seems good from a long-term angle. I am trying to explore securities that have just given a Buy signal using a 90EMA of this indicator. So I tried this:
BB:= Fml("Bang for the Buck");
MBB:=Mov(BB,90,E);
MBB<ref(MBB,-1)<ref(MBB,-2)<ref(MBB,-3) AND ref(MBB,-3)>ref(MBB,-4)
-----
This shows some securities but the results are based on the indicator, rather than the MA of the indicator, which I want. Thanx.
|
|
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 10/29/2004(UTC)
Posts: 1,394
Location: Glastonbury, CT
Was thanked: 2 time(s) in 2 post(s)
|
Mo, the bang for the buck was developed by Nick Radge and is meant as a filter as to which asset has the greatest potential to perform greater.
It was never designed as an entry or exit signal
|
|
|
|
|
|
Rank: Member
Groups: Registered, Registered Users
Joined: 2/23/2007(UTC)
Posts: 26
|
Can you elaborate upon that? You mean if I wish to compare the expected returns from say, an index, to a particular scrip, do I compare the value of this indicator, and how do I go about it?
|
|
|
|
|
|
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)
|
http://www.startraderreport.com/MSFormulas/BangForBuck1.html wrote:
The Use Of "Bang For Buck" is spoken about in Chris Tate's Book "The Art of Trading" and
this is where I originally came across the formula. It says in the book that it originally
came from Nick Radge, of Reef Capital and author of "Every Day Traders". Chris Tate's book is
reviewed in the Book Review Section of our site and Nick Radge's book will be reviewed as soon
as I read it!
I take a quote from Chris Tates book to explain the use of the bang for buck, as it is not really an
indicator as such. The quote is apparently from Nick Radge who introduced the concept.
"This is not a trading system or stock-picking method. It's a selection filter to use
when faced with multiple buy signals and not enough capital to fund them all." (Tate,C. 2001,The Art
of Trading: a complete guide to trading the Australian markets, Wrightbooks, Milton)
wabbit [:D]
|
|
|
|
|
|
Rank: Member
Groups: Registered, Registered Users
Joined: 2/23/2007(UTC)
Posts: 26
|
|
|
|
|
|
|
| Users browsing this topic |
|
Guest (Hidden)
|
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
