Kris Veteran  Posts: 102 Joined: 5/23/2004 Location: Johannesburg  User Profile | Thanks for the detailed explanation. I think I have a better understanding of the Holy Grail. Forgive me for repeating the whole thing (again), but I want to explain the system's behaviour. The system fires Holy Grail signal when we have the following formation (assume Long trade on EOD chart): 1. We have 3-bar V-bottom formation with the middle bar being the Lowest Low from the three bars. 2. The middle bar of the V-bottom touches or penetrates EMA(20) - this is the trigger bar as defined by Bill. 3.a. Today's Close is above the EMA(20) and is above the High from two days ago (the High of the bar just before the Trigger bar), or... 3.b. Today's Close is above the EMA(20) and is above the High from three days ago (the bar before the bar preceding the trigger bar :), or... 3.c. Today's Close is above the EMA(20) and is above the High from four days ago. 4. The Close 8-bars ago (adjust this parameter if you want to) was above the EMA(20), confirming that the market is resuming it's up-trend after forming a little V-bottom retracement to the EMA(20). So, what we have is a market that was above the EMA(20), then retraced to EMA(20), formed a little V-bottom that touched or penetrated the EMA(20) and we allow up to three bars to break above the High of the bar preceding the Trigger bar (the bottom of the V bottom). Now, I don't think that it is necessary, but if one wants to add an additional directional filter (without fancy loops) one can for example allow Long signals only when the recent High (say, in the last 20 bars) is the Highest High in the last 100 bars. To do that all you need is the following statement in the Filter block: * "HHV(20) = HHV(100)" in a Long Conditions window, and * "LLV(20) = LLV(100)" in a Short Conditions window. Please let me know if I got it right :) Cheers, Kris  Attached file : GrailSys.txt (2KB - 597 downloads) |
