FrameWork for Indicator development

December 22nd, 2012, 07:27 AM

Hello, and Happy holidays season and Happy new year (in advance

)

Lately I was working on some system development. and it all drills down to only 01 thing. The indicators ... (Independent of platforms , independent of instruments , )

As the title suggests, there must be some rules to validate , back test, and practical usage, future reliability ,

Please suggest as wild as you can ...

December 22nd, 2012, 01:26 PM

In my opinion any indicator may behave like an object (recall the concept of OOP).

Any indicator or a bunch of indicators working independently or collectively as a system, is subjected to following assupmtions.

1. The indicator takes in primary data. like price, volume, open int, news ,
2. only designer knows the internal working of indicator. (hope so..)
3. its working may be exposed through its properties. methods etc.
4. it should be able to signal the patterns formed within, the levels (OB, OS etc), divergences. or any other thing it is meant for.
5. it must have clear / fuzzy decision boundaries.

December 25th, 2012, 12:47 PM

Recall from EE courses

For our proposed Framework for Indicator development

we need two things,

01. The transfer functions (notations) (which can describe the indicator)
02. The test Inputs (The standardised signals to check the response of transfer function )

so that we can determine, how our indicator object model is going to response in all sorts of market situations..

FrameWork for Indicator development

Discussion in Platforms and Indicators

FrameWork for Indicator development