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Daily Speculations The Web Site of Victor Niederhoffer & Laurel Kenner Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter; a forum for us to use our meager abilities to make the world of specinvestments a better place. |
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ASK the CHAIR!
Q: After reading your article on Cumulative Sum charts and giving it some thought I decided for a short term trend follower like me the practical thing to do is use the CUSUM to determine when the average of a price series changes. The benefit is to augment my current information and to determine the placement of the most recent short-term pivot with the daily pivot and compare both of these with the most recent change of mean.
Now , whether it is worth the money to actually buy this product to keep track of such changes is a decision for the analyst in all of us.
In closing you might find my recent post to my blog to be mildly interesting. Hopefully, tomorrow I'll be able to post a few trades to further illustrate the utility of Volatility Spikes.
Bruce Dixon
Chair's response: Might you not test first whether following or going against the cutoff points is good or bad?