|
PureBytes Links
Trading Reference Links
|
At 05:43 PM 1/6/98 +0100, you wrote:
>Few days ago, playing with charts, I have found the holy grail!!!
>Just put on a point & figure chart a channel break intrabar length 1 or 2
>and you will see the best system in the world,astonishing net profit with
>drowdawn to good to be true.
>I thougth "I am rich!!!".
> The day after running it in real money I have got four signals so-so.
>In the evening I turn off/on my pc and the four signal were disappeard.
> Can somebody tell me what's going on?
>There is a way to make a signal true?
>Please help me because I am spending my days turning on/off on/off
>onoffonoffonoffonoffonoff...:)
>
>May the trend be with you!
>(copyrigth Bo Thunman)
>--
> mtacconi@xxxxxxxxx**
>
>
If you look at the data window for a P&F chart you will see the
problem. TS treats each column as a "bar", and for X's (up column)
the open price = the lowest X, and the close = the highest X,
and for O's the open=high, close=low regardless of your reversal
setting.
---- THIS IS NOT REAL WORLD ----
Think about what price has to do *really*, for a new bar to form,
(it has to retrace) and you will see the problem. The higher the
number you use for the reversal size, the worse the problem gets.
If opens and closes do not reflect reality, your system doesn't
either when backtested. You can write EL code to correctly test
p&f systems, but it can get messy.
hope this helps -
rich
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Rich Estrem, Tucson,Az.
estrem@xxxxxxxxxxxxx
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
|