{"product_id":"v133ibmcubby","title":"V.17:8 (335-342): IBM, Cubed by Dennis Meyers, Ph.D.","description":"IBM, Cubed\u003cbr\u003e\u003cbr\u003eHeres a look at whats involved in developing a\ntrend-following indicator for trading IBM.\u003cbr\u003e\u003cbr\u003eIn a previous article, I showed\nhow the application of a curve\ngeneratedbyathird-degreepoly-nomial\ncould be used to develop\na system to buy and sell British\npound (BP) futures. This time,\nwe will use a variation of that cubed system to create a system to trade IBM.\nIBM, one of the premier computer corporations in\nthe world, is a major factor in the movement of the\nDow Jones and Standard \u0026amp; Poors 500 indices.\nAlthough IBM is traded on all regional exchanges, the\nlions share and real market of IBM is traded on the\nNew York Stock Exchange (NYSE).\u003cbr\u003e\u003cbr\u003eDATA DISCUSSION\nWe will use the daily prices of IBM from January 1,\n1993, to December 31, 1998. IBM pays dividends on\na quarterly basis, usually on the dividend payable\ndates of March 10, June 10, September 10, and\nDecember 10. On the exdividend date, the price of\nthe stock is adjusted down by the value of the dividend.\nThus, over the space of a year IBM has a small\ndownward bias in price by the amount of the yearly\ndividend.Ifyou wereaholderof IBM,thenyouwould\nreceive those dividends in cash, and the small downward\nbias over the year would be made up by the cash\ndividends you received. However, in developing a\nsystem using IBM prices,those pricesarenotadjusted\nfor the dividend payments. This nondividend adjustment\ncreates a small distortion in parameter selection\nand walk-forward results, which should be noted but\ndoes not significantly affect the system.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133974278513,"sku":"\\V17\\C08\\056IBM.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1592f64a-4e19-4e0b-b974-7a63edbe4d96.jpg?v=1739659799","url":"https:\/\/shop.traders.com\/products\/v133ibmcubby","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}