RE: High-Impact Day Trading

[Stephen Gibson <gibson3d@xxxxxxxxxxx>]

Barnes' books are filled with conventional wisdom. Sadly,
we all know that most of the so-called conventional wisdom
just ain't so.

The notion of counting pivot points with an amplitude filter
is one way to follow a trend. But you will not be happy with
the results if you try it.

Barnes says to optimize his parameters for each and every
market. That should have been a flag on the play for me; but
like a darned fool, I bought the stupid book anyway.

It does not stand up well under test. See for yourself with 
my code below.

Steve Gibson...

{Barnes Day Trade simpified indicator 6/98 S.Gibson}
{Make plot 1 & 2 histograms}

Inputs: Unit(.125), A3(6);
Vars: NL(0), NH(0), NLctr(0), NHctr(0), LNH(0), LNL(0),
      LNLctr(0), LNHctr(0), TR(0);

If Date > Date[1] then begin
   NL = close;
   NH = close;
   LNH = close;
   LNL = close;
end;
If Date = Date[1] then begin
{Look for first trend when TR = 0}
If TR = 0 then begin
   if close - unit >= NH then begin
      NH = close;
      LNL = close;
      LNLctr = 0;
   end;
   if close - unit >= LNH then begin
      LNH = close;
      LNHctr = LNHctr + 1;
      if LNHctr >= A3 then TR = 1;
   end;
   if close + unit <= NL then begin
      NL = close;
      LNL = close;
      LNHctr = 0;
   end;
   if close + unit <= LNL then begin
      LNL = close;
      LNLctr = LNL + 1;
      If LNLctr >= A3 then TR = -1;
   end;
end;
{When in an uptrend. TR = 1}
If TR = 1 then begin
   if close - unit >= NH then begin
      NH = close;
      NHctr = NHctr + 1;
      NL = close;
      NLctr = 0;
      if NHctr >= A3 then TR = 1; {?}
   end;
   if close + unit <= NL then begin
      NL = close;
      NLctr = NLctr + 1;
      If NLctr >= A3 then TR = -1;
   end;
end;
{When in a Downtrend. TR = -1}
If TR = -1 then begin
    If close + unit <= NL then begin
       NL = close;
       NLctr = NLctr + 1;
       NH = close;
       NHctr = 0;
       If NLctr >= A3 then TR = -1; {?}
     end;
     If close - unit >= NH then begin
        NH = close;
        NHctr = NHctr + 1;
        if NHctr >= A3 then TR = 1;
     end;
end;                     
  
plot1(0,"");
if TR = 1 then plot2(TR,"");
if TR = -1 then plot3(TR,"");
end;