I'm interested to hear your reasons for choosing Median, rather than just suggesting it you may convince me with a reasoning
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| Author: | SB_Beginner [ Thu Dec 23, 2010 12:32 pm ] |
| Post subject: | Re: A new spread betting strategy |
This is what edswifa(Andrew) suggested for our initial stop level. It's not a bad idea to use the highest level of ATR over the last 3 months lets call it HATR. We could say 1.5*HATR. We still need to decide what price to base this on, close, low, median etc. The problem is knowing what to suggest for the best. How I said before I think we need to just find something we all agree on and use that for now. We can always review it at a later stage. |
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| Author: | SpreadBettingTrader [ Thu Dec 23, 2010 3:05 pm ] |
| Post subject: | Re: A new spread betting strategy |
Well I only ever use closing prices data, would be interesting to see what others usually use. |
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| Author: | offthelip [ Thu Dec 23, 2010 4:08 pm ] |
| Post subject: | Re: A new spread betting strategy |
I think there are disadvantages in using the Highest ATR over the last 3 months. I could be that 2.5 months ago there was a lot of volatility in the share price for some reason and the share in now much quieter. WE would be stuck with a value which was not appropriate for the current volatility. Welles Wilder who derived the AVTR specifically used a method of calculating AVTR which weighted it in favour of the more recent data, thus if we want to take into account 3 months of values , I suggest using an 90 day AVTR, instead of a 14 day AVTR. |
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| Author: | SB_Beginner [ Thu Dec 23, 2010 4:25 pm ] |
| Post subject: | Re: A new spread betting strategy |
Very good point well made offthelip. I think in light of those comments we should stick to 1.5*ATR. But do we use, close, low, or median price. I prefer median price. Probably best to put it to a vote. I vote median price. |
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| Author: | SpreadBettingTrader [ Thu Dec 23, 2010 4:48 pm ] |
| Post subject: | Re: A new spread betting strategy |
I'm interested to hear your reasons for choosing Median, rather than just suggesting it you may convince me with a reasoning
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| Author: | offthelip [ Thu Dec 23, 2010 4:54 pm ] |
| Post subject: | Re: A new spread betting strategy |
I wish I knew, but just to be different I will vote for "close", only because it is easier to do the sums. (I can do X-1.5*y in my head, but I struggle with ((A+B)/2)-1.5*y in my head!!) Have we decided on how long to caclulate the AVTR over?? |
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| Author: | edswifa [ Thu Dec 23, 2010 11:15 pm ] |
| Post subject: | Re: A new spread betting strategy |
I always thought the close price was the most important of the period, so I will nominate that. I am very curious why you would median though, can you explain your thinking? |
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| Author: | offthelip [ Thu Dec 23, 2010 11:58 pm ] |
| Post subject: | Re: A new spread betting strategy |
Just to make it even more difficult, we could also consider what I think is often called "typical price" , this is (High + low +close)/3 I personally would favour this over (High + Low)/2, because it does take the close into account, and I think the close is important. (that is why I voted for it!!). (and I definitely can't do this one in my head!!) |
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| Author: | SB_Beginner [ Fri Dec 24, 2010 10:59 am ] |
| Post subject: | Re: A new spread betting strategy |
I really wish I could tell you I have some profound logic for using the median price but it really comes down to a personal preference. I used to use the close but since I've started trading my super trend strategy I've started to use the median price instead, purely because the super trend uses the median price in it's calculation. Offthelip makes an interesting suggestion of using (high+low+close)/3. It's certainly something I'll be looking into more. I guess for now I may have overcomplicated things by suggesting the median price as an option. I think most people are preferring to use the close price. I'm happy to go with this if others are. I know I probably haven't been that useful here, but hey, I'm still learning here as well. As always thanks for all your input. If I don't get chance to respond on this forum again I hope you all have a very Merry Christmas! |
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| Author: | SpreadBettingTrader [ Fri Dec 24, 2010 11:01 am ] |
| Post subject: | Re: A new spread betting strategy |
Vote for close, it just makes more sense. *edit - I posted this before I saw your last post SB* |
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