## Computerized Trading: Maximizing Day Trading and Overnight ProfitsComplete with explanatory charts, diagrams, and checklists, a detailed discussion of the use of computerized trading systems draws on the expertise of twenty expert traders, and gives step-by-step advice on strategies and reliable data to both beginning and experienced investors. |

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Page 49

DAYS OF OEX DATA WITH M = Z0. THIS CHART IS PRODUCED WITH THE

SAME CONDITIONS AS IN TABLE 4.2 EXCEPT M = Z0. THERE IS AN

IMPROVEMENT IN RESOLUTION OVER

THE BARS IS ABOUT Z TIMES LESS THAN THAT OF

INTERVALS ARE Z TIMES SMALLER AND THE PDF IS NOT NORMALIZED BY

THE INTERVAL ...

**FIGURE**4.4 PRICE DISTRIBUTION FUNCTION (PDF) CONSTRUCTED FROM I4DAYS OF OEX DATA WITH M = Z0. THIS CHART IS PRODUCED WITH THE

SAME CONDITIONS AS IN TABLE 4.2 EXCEPT M = Z0. THERE IS AN

IMPROVEMENT IN RESOLUTION OVER

**FIGURE**4.3. THE MAGNITUDES OFTHE BARS IS ABOUT Z TIMES LESS THAN THAT OF

**FIGURE**4.3 SINCE THEINTERVALS ARE Z TIMES SMALLER AND THE PDF IS NOT NORMALIZED BY

THE INTERVAL ...

Page 67

Referring to

pattern before breaking out to the upside strongly with above average volume. To

prevent getting false signals or breakouts, the cup should be as wide and round

as possible and not a V shape. And the handle should be small and not drag

below 50 percent of the height of the cup. The longer the time it takes to establish

the cup formation, the more powerful the rally. And lastly, the breakout should

always ...

Referring to

**Figure**5.2, United Technologies goes through the cup and handlepattern before breaking out to the upside strongly with above average volume. To

prevent getting false signals or breakouts, the cup should be as wide and round

as possible and not a V shape. And the handle should be small and not drag

below 50 percent of the height of the cup. The longer the time it takes to establish

the cup formation, the more powerful the rally. And lastly, the breakout should

always ...

Page 134

Row 36. Blank. ° Row 37. Cell D37 is the adjusted return of the third strategy (

column D) which is the top performing strategy in this example. This cell's formula

is =B27+B35 X (G20—B27). ' To get the annual adjusted rate of return, Cell F37

is the natural exponent of D37 and cell D38 is cell F37 to the 250th power (

assuming 250 trading days in one year).

the numbers calculated from daily returns of three hypothetical trading system

strategies.

Row 36. Blank. ° Row 37. Cell D37 is the adjusted return of the third strategy (

column D) which is the top performing strategy in this example. This cell's formula

is =B27+B35 X (G20—B27). ' To get the annual adjusted rate of return, Cell F37

is the natural exponent of D37 and cell D38 is cell F37 to the 250th power (

assuming 250 trading days in one year).

**Figure**8.4 shows a spreadsheet with allthe numbers calculated from daily returns of three hypothetical trading system

strategies.

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### Contents

PART l | 1 |

Popular Trading Indicators | 13 |

Combining Trend Analysis with Indicator Readings | 30 |

Copyright | |

22 other sections not shown

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