I chimed in with David (Primus) in a different thread in which David was requesting that you open up the limitations on the parameters of technical indicators such as simple moving averages, RSI, and ATR. However, I think this issue is exceptionally important and justifies its own thread with a more targeted headline.
A HUMBLE PLEA TO MARCO and the P123 TEAM: [color=red]PLEASE REMOVE / OPEN-UP THE CONSTRAINTS ON THE P123 TECHNICAL INDICATORS![/color]
BUSINESS JUSTIFICATION: Opening up these parameters could help to cement P123’s position as a market leader for strategists in the fast-growing Exchange Traded Fund (ETF) industry (which is now growing by 25% per year - with more than $1 TRILLION in funds added to ETFs each year) – not to mention keeping long-term stock investors like David happy with the P123 product.
Reasoning: At present, there are a limited number of sites that offer the ability to design, backtest, and implement ETF-based investment strategies, but more are being launched each year. At this time, P123 has an advantage in the capabilities it offers to ETF-strategy designers, but with the unnecessary limits imposed on parameters for technical indicators and other legacy factors in P123, many ETF-strategy designers who rely on technicals will go elsewhere.
Here’s Why: Because ETFs do not have the fundamental ratios that are inherent to individual stocks, ETF strategists frequently rely on technical indicators for timing signals to reduce market exposure or change positions. But P123 has imposed unnecessarily short limits on technical indicators such as Moving Averages, EMA, MACD, CCI, Chaikin, OBV, RSI, Bollinger Bands, Stochastics, and more…
[color=red]P123’s BOLLINGER BANDS are limited to just 100 days! [/color]
[color=red]P123’s RSI is limited to 200 days![/color]
[color=red]P123’s STOCHASTIC OSCILLATOR is limited to just 50 days![/color]
StockCharts allows 600 days for each of these indicators! But no one is asking you to compete with StockCharts or any other sites that specialize in technical indicators –– just to increase the existing limitations on your existing technical indicators!
Many of the P123 settings are only appropriate for DAY-TRADERS, not the longer-term investors and investment professionals that P123 attracts. I would like to promote the P123 affiliate program and send traffic your way, but I haven’t because of these limitations, which stop me from teaching others how to implement many of my best ETF-based strategies using the P123 platform.
If you cannot open up these parameters, I’m sure many P123 members would appreciate if someone could please explain why these very short limits remain in place – in some cases, 15 years after they were first added to the P123 factor library. I know that many P123 members have tried the technical indicators with poor results – but that’s probably because they are set-up for used by short-term DAY TRADERS!
Opening up the limits on technical indicators for investment (LONGER-TERM) purposes would probably surprise every P123 member with what is possible. I will even offer to write and publish for P123 members a comprehensive, detailed, chart-filled report that shows how the longer-term technical indicators can be put to practical use as accurate components of a stock or ETF-investment system! When you combine stock fundamentals with technical, price-based indicators, the results can be astounding (and far more reliable)!
If there is a good, practical reason why these parameters must be so limited, it would be very valuable to know. If not, why not increase them ASAP? It seems like it would be a 15-20 minute job to set those numbers higher within the P123 admin interface. Changing a “50” => to “500” or “1,000,” for example. I’ll be glad to provide free advice, after consulting with other key P123 members for reasonable limitations for each indicator, while still making them practical for investment purposes. Just let me know!
Thank you,
Chris – and many other P123 members who would love to spend all our money with P123, not be forced to supplement our P123 work with less limited technical indicators elsewhere