Macd-r2

[pclark]

I came across this article. It describes a version of MACD that is more reliable then our traditional version. From what I can gather no one has developed the version in the article and it is not available anywhere else. It would be a great addtion to NT and something that no one else has as far as I know. Supposedly the version in the article can be up to 90% accurate. Here is the article. I think by reading someone might be able to figure out how the indicator was programmed but it's beyond me. I would be interested in seeing if anyone might know about this or could develop it.

http://www.e-m-h.org/MeissnerAlexNolte.pdf

Paul

[NinjaTrader_JoshP]

Thank you for the link Paul. If the community does not chime in you could also try one of the 3rd party NinjaScript Consultants here: http://www.ninjatrader.com/webnew/pa...injaScript.htm

[Bogan7]

I thought the indicator developer guys on here would be all over this? Ah well

[Laserdan]

it is not a new version of the macd. I has two trading methods in which to increase the performance of pure macd entries:

This study tests the traditional MACD indicator and derived two methods, MACDR1 and MACDR2 (R: Refinement), which significantly improve the MACD trading results and outperform the benchmark of holding a no-risk security, the Treasury bond and holding the underlying instrument, the NASDAQ-100.

[Bogan7]

Thanks for that so are you saying it is more about exits and entries than the actual indicator then? Say for example (I am just guessing) if the indicator moves by a certain % instead of just crossing you take an entry trigger?

it is not a new version of the macd. I has two trading methods in which to increase the performance of pure macd entries:

[Laserdan]

these are snippets from the document:

The first model, called MACDR1, attempts to eliminate buy and sell signals when the averages MACD1 and the Signal are crossing each other frequently in a short period of time, thus in a case, where there is no clear trend. Instead, the trading signal is given three days after the actual crossing if the trend is still intact. Thus, the position is opened at the closing price of the third day after the crossing, if no crossing has appeared on day 2 and 3.

A further important issue is to close the trade at the right point in time. Since the MACD indicator is a lagging indicator...[snip]...[the models]
resolve this problem by indicating a closing signal when a predetermined profit has been reached. In this study we test profit levels of 3% and 5%. Thus, the models gives a signal to close an open position when a 3% or 5% target gain has been reached or if another crossing occurs before the target is reached.

The basic concept of model MACDR2 is the same as in model MACDR1. However, the buy or sell signal is given, if the difference between the moving averages is bigger or equal than a certain percentage of the stock price at the end of the third day after a crossing. We test crossing-levels from 0.5% to 3.5%.

So not a new indicator to code, but potentially a new strategy against the indicator...

Thanks for the article though...

[Bogan7]

these are snippets from the document:




So not a new indicator to code, but potentially a new strategy against the indicator...

Thanks for the article though...

From what you have written having to wait 3 days it is not suitable to day trading either then?