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IDS World Markets Fri 27th February 09


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I have never used a Fisher Transform (sounds like a Playskool toy).

 

Fisher was a farmer, (actually an agricultural scientist.) He made major contributions to both genetics and statistics and was one of the most important scientists of the 20the century.

 

 

Sir Ronald Aylmer Fisher, FRS (17 February 1890 – 29 July 1962) was an English statistician, evolutionary biologist, and geneticist. He was described by Anders Hald as "a genius who almost single-handedly created the foundations for modern statistical science" and Richard Dawkins described him as "the greatest of Darwin's successors".

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Today is the last day of the quarter.

 

The extreme lows of the last crash (Nov) had been mitigated when the last quarter ended, so many investors looking at their quarterly statements probably never realized just how much they were down at one point.

 

This quarter is going to end low. Maybe they will paint the tape to try for a less-terrible-close, but at this point they're fighting traffic.

 

Next time their clients open those envelopes, there's going to be a wave of selling IMO.

 

Now is a pretty good time to get short I think.

 

(That ES short and the FAZ I was holding looking pretty good given the futures... ES at 743 right now, down about 10)

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Just found couple minutes to check the indices. Its all good. ES.F hit 741.30 the move to 743.50. German DAX is falling, with 3,28% now.

 

USDJPY and EURJPY falling, jpy geting stronger. there should be a nice gap today and the break of the november's low at S&P500

 

Yeah OPEN THE HELL GATE:)

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Fisher transform is awesome.

 

It replaces stochastics, MACD and RSI for me. It's pretty much the only indicator I use apart from price (duh).

 

Fisher changing direction with a TL break is a great signal.

 

I like to stack them up with different periods.

 

The reason it works is that it transforms the non-gaussian movements of the market into a roughly gaussian distribution.

 

The market tends to spend most of its time at gaussian extremes and very little of its time moving between them.

 

The Fisher smooths that out and makes it more gaussian, which makes the signals much easier to read.

 

It is very similar to the sigma function you use as the input to a neural network so the little brain cells can figure out what's going on.

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Fisher transform is awesome.

 

It replaces stochastics, MACD and RSI for me. It's pretty much the only indicator I use apart from price (duh).

 

Fisher changing direction with a TL break is a great signal.

 

I like to stack them up with different periods.

 

The reason it works is that it transforms the non-gaussian movements of the market into a roughly gaussian distribution.

 

The market tends to spend most of its time at gaussian extremes and very little of its time moving between them.

 

The Fisher smooths that out and makes it more gaussian, which makes the signals much easier to read.

 

It is very similar to the sigma function you use as the input to a neural network so the little brain cells can figure out what's going on.

:) :) :)

 

I guess you can see from my charts above, that I also like the fisher, & stack them one above the other.

 

Here?s a couple of serious questions though:

 

Which chart time interval to choose? A fixed time period, or a number of ticks?

 

On how many intervals do you see the fisher working best?

 

I am setup mostly at 133 tick intervals, with the fisher input as 5, 10, 50 & 100 intervals.

 

I change back to 1m intervals some times also.

 

Any ideas?

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:) :) :)

 

I guess you can see from my charts above, that I also like the fisher, & stack them one above the other.

 

Here?s a couple of serious questions though:

 

Which chart time interval to choose? A fixed time period, or a number of ticks?

 

On how many intervals do you see the fisher working best?

 

I am setup mostly at 133 tick intervals, with the fisher input as 5, 10, 50 & 100 intervals.

 

I change back to 1m intervals some times also.

 

Any ideas?

 

I like to use roughtly geometrically increasing periods. So 5, 10, 20, 50, 100 and so on.

 

On the longer timeframes, you can pretty much trade the slope. A double bottom or double top on the Fisher is one of the most reliable signals I know.

 

I coded a trading system based solely on the Fisher which worked well!

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