RMI Oscillator
Author: booter
Creation Date: 1/1/2013 9:11 PM
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booter

#1
Just wanted to say thanks again for your help this morning. I knew RMI is powerful, I just didnt realize how much so till i figured out the WL. Anyways what i came up with is an 87% win and double your money against indices and with the right scan this promises to be a Spectacular year that I want to share with the community.

CODE:
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Eugene

#2
Make sure your data loading range is set to at least 600 bars to run this script. It uses an "unstable" indicator (200-period EMA) that requires a seed period of 3 times that period to stabilize its values.

For more information, check out the WealthScript Programming Guide, Indicators > Stability of Indicators.
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Eugene

#3
Also note that using 4 RMIs with different parameter sets adds 8 optimizable variables to your system, decreasing its robustness and raising the possibility of curve fitting.

You might want to have a look at a serious book that not just touches the question of optimization. A good (but not unique) candidate are "Design, Testing and Optimization of Trading Systems" or "The Evaluation and Optimization of Trading Strategies" by Robert Pardo
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karla2010

#4
took a look at this indicator and noticed that it does not respond to changes in the first parameter when the second parameter is held fixed. For example, RMI.Series(Close,5,13) produces exactly the same results as RMI.Series(Close,8,13). Is this expected? Also can you say a few words about what the parameters mean, there is no wiki on this that I could find.
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Eugene

#5
The RMI oscillator was submitted to Community Indicators by a customer. The project's source code has always been open, and its name implies that it's a community project. You're welcome to review the RMI indicator's code (check out Oscillators.cs after logging in to the Wiki and downloading the project), find and fix the culprit in its logic, and pass on the updated class to us. We would also appreciate if you could learn the application of RMI from third party sites and write up a short Wiki page following our standards (that's how we do it). Thank you in advance.
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karla2010

#6
thanks for the reply. Agree, when risking ones money on a trade it is best to use only the code written yourself, or at least effectively so by reverse engineering. I have already written my own version and will compare it against similar ideas. The basic idea of Altman was to introduce more than unit lag into the difference and hopefully get more momentum into the rsi index.