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3rd Generation MA's: a new approach

Recently I read an interested scientific publication of M. Dürschner (2011) presenting a novel type of MA, take a closer look. Worth a whileand feel free to comment.

http://www.scientific-trading.com/avg3g.php

http://www.vtad.de/

Tomek

Comments

  • JohnLast 2947 days ago

    Very interesting. I am going to check it. I will be interested to check the source code, because you know without seeing what is under the hood they can create 7 th generation of MA.

    I think we may enter it into a BPNN predictor why not.

  • Dezerter 2947 days ago

    Yes of course, it also may be used in the braintrend system which you developed in TSD. Generaly it can have various usage. 

     

  • JohnLast 2947 days ago

    Oh yes of course I have another mod that I will share soon. Here as far as I can see the formula is:

    As the article is in german I do not understand natively, only with google translate. I do not understand where the GP comes from. 

    This should be the formula.

    NMAW (this should be new moving average)
    calc kurs: (High()+Close()+Low())/3;   this is OK
    calc lamda: GPeriode/Kperiode;         Gperiod, Kperiode maybe bigger and little period
    calc alpha: lamda*(GPeriode-1)/(GPeriode-lamda); OK
    calc ma1: GD(kurs, GPeriode, W); what is W, waht is GD
    calc ma2: GD(ma1, KPeriode, W);
    calc nmaw: (alpha+1)*ma1 - alpha*ma2;
    nmaw

    As I like nested indicators I would make another jurik with that. In the jurik we have in the forums there are three nested things. The first thing is EMA, on that A Kalman filter is applied and the last thing is jurik filtering taking into account the volatility.

    Here I can replace the EMA with the New Moving Average.

     

     

     

  • JohnLast 2946 days ago

    Here it is the mod .

  • JohnLast 2946 days ago

    Chech also the brain trend mod.

     

  • Dezerter 2945 days ago

    This mod gives a big picture of the overal market sentiment. I thinking tht it would be nice to use it as a sort of a "main identifier" for the current trend (in a higher TF) and combining it which with a more sensitive indi to catch good moments to open/close a trade in lower TF's. 

  • JohnLast 2945 days ago

    Yes indeed it may be done.

    However how do you think to make that? I was considering the followig thing. You can use a simple cross over strategy on bigger frame and optimize/ test this. And whenever you have those conditions you can look for a local solution. 

    We could use one universal MA cross - over strategy EA and input the 3rd generation MA into it. 

     

  • Dezerter 2945 days ago

    Yes, but as you said "(...) the true strenght of the Elliott wave principle is to predict the volatility and the the underlying market action. How much it is going to continue and when it would start to do something else." The fluctatnion of the prices on the lower TF's is much more bigger than on the higher ones. In fact that could cause failure using a cross over strategy even with the usage of 3rd MA. The point is to, firstly define main trend, secondly get a more sensitive system to get the good entry/exit and last but not the least -"define" the structure of the price movement. Take a look at this:http://www.youtube.com/watch?v=qqd85gqI1RI                                                                                                                                                 

  • JohnLast 2945 days ago

    Ooooh she is risking everything, 100%, on every single trade. Brave woman indeed. That how she won the trader competition. There is no joke you have to risk everything to win a competition. That reminds me one of the most favorite stories told me by Zdravko (he is a member here), when he was a broker here in Bulgaria he had a colleague. His colleague was recruted by the firm after winning several demo competitions maining really insane profits. And then he was asked in the firm to trade money that is a property of a mafia man, that does not accept losses. Man this man loosed his mind he was not able to take a trade. Then Zdravko asked him how he made the incredible profits in the demo competitions. And he said I risked everything 100 % all the time.

    The second thing as I am a little bit of a quantitative trader, a little bit. I feel somewhat offended when she says that all indicators are guarbage. And that is a simple way. Like sitting all the time on the screen and starting making magick afterwards. and last but not least, she is sexy anywway. 

    I know what you say is the basis of the good old three windows system of Elder. But the practice is much harder.

     

     

     

     

  • sachinarora 2940 days ago

    hello john sir

    Please Modify BB MACD ADDING 3rd generation ma"s.

    Thanks In Advance

  • JohnLast 2940 days ago

    Hi, It looks like a nice idea. However I suggest that we all type the ideas in the group coders wanted. So with a list It is easy to check. Lke that I could easily forget. I can do only simple things but this is within the limits of my humble abilities.