I agree 100% with David on this topic. There are a vast number of indicators in the P123 system that are inexplicably constrained by limits that stop me in my tracks for many of the technical-based factors I would like to use.
Most technical-oriented sites – and P123 has apparently followed in these footsteps – are set up to provide signals for day-traders and other short-term investors. However, for investing purposes – as opposed to trading – we can apply more extended parameters and get outstanding results. However, P123 has deemed it necessary to place limits on many of these parameters.
For example, I can use MACD on a monthly chart on the StockCharts.com website and get very accurate IN-MARKET or OUT-OF-MARKET signals. In fact, the MACD indicator can be applied to a monthly chart going back to the year 1900 and an investor would have accurate signals of when to exit the market and avoid significant downturns that are 100% accurate.
However, since P123 only provides daily prices, to make the standard settings for MACDD(12,26,9,#Bench) emulate monthly signals, we would have to adjust those settings to accommodate the average of 20 trading days in a month. This would convert to MACDD(240,520,180,#Bench). However, with P123, our MACDD settings are limited to periods of 200 or less! Hence, I can’t use MACDD in P123, and I’m forced to rely on other websites.
As David said, these are simple moving-average calculations; we’re not generating a mission plan for a trip to Mars and back.
In today’s world of nearly cost-free storage and processor speeds that far outpace the need, is it really vital for P123 to keep all the old constraints on the technical indicators (many of which have had those limits since 2004)?
Opening up the parameters on technical indicators and all other legacy factors that have been in the Portfolio123 system since the start-up days of the early-2000’s would make P123 an even more powerful tool than it is now for DIY investors and boutique-office professionals.
-Chris