TRIX formula needs correcting

[Charlie]

Sacha,

The 'Buy' signal currently reads "TRIX(14) crosses EMA(9) from below". But the two terms need to be swapped.

TRIX(14) is the 'slow' line, and EMA(9) is the 'fast line. A'buy' signal would occur when the fast line crosses the slow line from below.

To test this is so, apply the as-found version of TRIX to some stocks. No signals will result. Next, make a copy of the as-found TRIX system, and then edit the 'buy' and 'sell' formulas with the needed corrections. Lastly, retest with some stocks. Now signals will happen.

Charlie

[Sacha]

I will have a look, I am currently away from my computer. But from the description it doesn't sound wrong. EMA(9) should be of TRIX itself rather than of closing price. So, TRIX should be the fast line.
I will have a look and let you know my findings.

Thanks,
Sacha

[Charlie]

Sacha,

My mistake.I should have said, 'Buy' when  TRIX(9) crosses TRIX(14) from below. That system will produce profitable signals. The as-found system produces no signals.

Charlie

[Sacha]

Hi Charlie,
Thank you for finding problem with TRIX trading system. It's definition was wrong. EMA(9) should have been applied on TRIX instead of Closing price. Next update will have updated definition.
Your suggested change can in fact be used too, but that will be another trading system. If you get good result of that trading system I will be glad to add that to Stockalyze. :)
I case you are interested the attached images show corrected definition of TRIX trading system.

Thanks,
Sacha

[Charlie]

Sacha,

I knew there was a problem with the coding for the TRIX system. I'm glad you agree and corrected it.

As for the alternate version I proposed, it's just a 2 MA X-over system and not worth inclusion in your basic menu.

Charlie