JFC Self Adaptive Indicator Signals

Input Considerations

This entire set of indicators and trading signals has been designed to allow the end user as much flexibility as possible. As mentioned previously, the most successful traders I work with are those who consistently use these tools to enhance their own trading style.

The use of the various inputs for each indicator and signal are the means by which traders are able to apply these programs to a wide variation of market situations.

However, with the flexibility provided by the use of multiple inputs comes a bit of an inconvenience when the indicators and signals are used simultaneously on the same chart.

Unfortunately, the indicators, trading signals and the strategies which result from the combination of these signals all operate as separate programs, completely independent of each other.

As a result of this situation, it is vital that the end user be careful to assure that the inputs being used for the indicator are exactly the same as those being used for the applied strategy. Failure to do so will result in a confusing chart picture and a frustrating system development experience.

This situation will be avoided upon the initial use of a signal – indicator combination as the default settings for the signal and indicator are identical. For instance, when one applies the Reversal Indicator and the Reversal Buy Signal to a chart, the sensitivity settings for both will be automatically set to 5, which is the default for both programs. However, when one begins to experiment with the sensitivity setting in order to create a more favorable configuration for the system, it will quickly be obvious that the entry points indicated by the system’s buy and sell arrows no longer match up with the familiar cyan and magenta plots of the indicator.

Changing the inputs for the system to ultimately alter the profit picture for the commodity or stock issue being tested will not automatically change the inputs for the associated indicator, since each is a separate program.

An indicator is usually applied to a chart first, in an attempt to create a visual picture of the response of the chart to an individual trading environment.  After an acceptable input setting is discovered using the system, it is usually helpful if the inputs are changed for the indicator, if for no other reason that to visually assure the trader that the applied system is indeed responding as one would expect.

It will frequently be necessary to change the inputs of more than one indicator. For instance, if one is using the Reversal signal to enter and the Real Time Target in combination with the Volatility Stop for exits it will be necessary to change inputs for both indicators after one has settled on the proper combination of inputs for the trading strategy at hand.

I realize this situation presents a bit of an inconvenience, if not an absolute annoyance. If it were possible to avoid this nuisance it would have been done and this section would not be in the manual. However, until the platform provider implements a series of global variables to deal with this situation, it becomes a fact of life for trader using these system development tools that the inputs will need to be altered in order to present a logical picture on the chart.