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SIGNAL: LSS_New_II

This is an application that calculates the model behavior of price action of a market and simulates trading based on values that are claimed to represent valid LSS entry and exit points. These claims by George Angell were found in an advertising piece he distributed and seemed to have great validity.

The actual model trading signals are derived by measuring the computed LSS Values against a multiple of LSS rate of change (ONE BAR) which is multiplied by a selected value. Also, (if desired) a "trend" indicator taken from XAverage2 can be used to select the direction of a trade and if not the same as the LSS value then the trade is not called for.

Exits or reverses on an N day test if losing. Can be set to reverses (if selected) if closing price is below/above an exit moving average on selected day after entry.

The system also includes code which allows the model to "take profit" at a certain dollar value or a multiple of a 14 bar average true range.

Determination of optimum parameters is important for whatever market is being simulated.

An approach which the author has found to be reasonable is:

First: Set the following parameters to zero (0):

MaxDays (0), LengXitA(0),

BadStop(0), MaxCont(0), TakProf@(0).

AND SET ExitEOD (FALSE) yes, False.

Second: In a single run optimize the following parameters with indicated ranges:

LengLSS(2-9,1) LengSMO(1-7,1)

LengPSMO(1-3,.5), LSSDvMul(0-2,.25);

After this run then you can "play around" with the values for the parameters you originally set to zero.

This system exclusively for Licensees.

See www.theswingmachine.com for order information

This is a licensed copyrighted product.

Any person who has not obtained this product by making a proper payment to SYTECH Corporation through the www.theswingmachine.com web site and PayPal is in violation of federal copyright laws and subject to fines and possible jail terms.

DISCLAIMER:

The information contained in this .ela file and or information that may result from applying this .ela to any set of data are for educational purposes for examination of possible approaches to a market trading methods.

The information may be applicable to assist the user in developing indicators that might be used as guides for market timing but all of the information contained herein is strictly for educational purposes.

The author advises that if this .ela is applied to any stock and or commodity time/price series, the indicated orders from such application are strictly for purposed of demonstrating the principles outline herein.

Clearly the author cannot accepts any liability whatsoever for results that might occur should you use these "educational demonstration orders" for actual trading purposes.

The information which will be presented upon application of this .ela is in no way a representation to buy or sell securities, bonds, options or futures.

This information is not intended to be used as the basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor.

The instructional examples which arise from the application of this .ela are for educational purposes only and the past performance of the methods used to construct the examples are not necessarily representative of future behavior of the model.

Remember, this is STRICTLY a mathematical model of a potential method of market activity and in no way should be construed as a recommendation of any activity in any market.

ALWAYS CHECK WITH YOUR LICENSED FINANCIAL PLANNER, ADVISOR, OR BROKER BEFORE TAKING ANY KIND OF INVESTMENT ACTIVITY.

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Determining the parameters for the market model is critical to the proper operation of the model for guidance in how a strictly mechanical market trading model will work. Examine closely the information presented earlier on this subject.

The following is the frontend documentation which is a part of the .ela that is titled LSS_New_II .

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Inputs: LengLSS(6), {One of 2 TP detection parameters }

{for daily data range = 2 to 9 }

{set negative to do reverse signals }

LengSMO(5), {Smoothing of prices to use in above }

{range for daily data is 0 to 5 }

LengPSMO(1), {Smoothing of price before compute. }

{Range of values is 0 to 4 in .5 incur }

{You ain't going to believe the effect }

LSSDvMul(1.2); {A multiplier for the LSS derivative }

{to be used as a crossover filter to }

{determine trade points. }

{Range is 1 to 4 in steps of .1 or so }

Input: MaxDays ( 0), {Max days before evaluating if in a }

{losing position and if so reverse if }

{this value is negative otherwise quit.}

{If MaxDays<1 then MaxDays*100 is used }

{and exit is based on moving average. }

{Pretty complicated but generally just }

{a value of -4 to -7 and zero on next }

{will work. }

LengXitA(0); {Length for moving average to check for}

{reversal to occur if MaxDays negative }

{Typically use from 2 to 5 }

Inputs: BadStop(0), {Disaster stop to run with days stops }

MaxCont(2), {Maximum number of contracts to trade. }

{This works with following parameter. }

TakProf@(0); {Either a dollar amount (TPA<0) of a }

{multiplier for ATR14 to set point at }

{which to take a profit. Must trade }

{at least 2 contracts for this to work.}

Inputs: ExitEOD(False); {Set for day trading }