Random walk breakout....

[titus-uk]

Sorry for not posting so often - coming up to exam time again!

Anyway, been playing around a little on OT, and have beeen looking closely at an indicator called "Random walk breakout RWI-B). It works by stating that if an indicator moves outside what is mathematically an area around the price where movements may be random, then it must be trending. I will give more info to anyone that needs it.

It seems to do well on stocks that have a tenency to trend. So it does not trigger that well for ones that whipsaw, or are Naz driven. However, after doing rather badly of late, I feel that as I can't day trade, give me a stock like arcadia, Mothercare, Amec etc etc. Thats where the money is to be made IMHO.

I would like to know if any other users like this indicator, and if so do they simply optimize settings or do they have their own. Similarly, what indicators do they use alongside - currently using MACD and SAR at the moment.

The other side is that on my list of well over a thousand stocks with volume over 100K, I have less than 20 with a buy signal - which is just about right at the moment!

Mark

 

[ChartMan]

I have no experience of OT, but your buy to stock total ratio is in the same ballpark as mine.FWIW.

 

[esiotrot]

OT? Omnitrader?
I use Metastock which has a RWI indicator and have not understood what its about.
The plot shows RWI plotted for highs and lows using different time scales (minimum 8 - and maximum 64) As clear as mud.
What determines a breakout?

Metastock "suggests" -
Enter long when RWI(high) > 1 and RWI (low) peaks >1
Enter short when RWI(low) > 1 and RWI (high) peaks > 1

I guess I could write an exploration for this.

Bewildered

Peter

 

[Mike_UK]

I like Random walk as well. Often I used it to decide whether the upward trend has finished and it is time to sell.
Before I had the Nirvana club ARM2 genetic, neural network software I use to highly optimise Random Walk.
Min RWI period 0-20 step 5, Max RWI period 20-60 step 5.