Kris Veteran  Posts: 102 Joined: 5/23/2004 Location: Johannesburg  User Profile | Hi Bill, Looking at a chart one can spot the Holy Grail formation. Obviously, with a system one has to be very specific and hence my questions: 1. How do we detrmine the direction of The Grail setup? ADX shows us the strength of a trend irrespective of the direction. 2. Should we add a filter EMA(8) > EMA(21) for LONG trades, and EMA(8) < EMA(21) for short trades? You mentioned it in your recent note. I a not sure if it is discretional confirmation or a hard rule. 3. Should I remove the LookBack from teh system? It is designed to tell us that the market was above EMA(20), briefly dipped below the EMA(20) (for no more than 10-bars, or whatever you set the parameter to) and the market is above the EMA(20) again. 4. If we remove LookBack parameter, should we have another filter, e.g. go long only if EMA(20) is trending up? on your recent picture/post EMA(20) has turned down, but you still consider it as a LONG Grail candidate. Obviously you have been trading the Holy Grail for a long time and it has become a subconscious trade for you. I still have to decipher it :) Cheers, Kris | |
