RichardL Veteran   Posts: 134 Joined: 9/18/2004  User Profile | This is attached only as an example to illustrate the method, **please view it with the usual disclaimers ie its not a recommendation to invest etc etc.** Things to note: 1. The trade winning vote originates outside the backtest optimisation boundary. This is one reason I set my trades to stop < 14 days - otherwise I found that the system would keep long running optimised (hindsighted) trades in play inhibiting newer non-optimised opportunities from appearing. The actual strategy is one that doesn't use weekly "look-forward" confirmation (this behaviour gets a bad press due to potential hindsight issues). 2. The ADX has two maxima, the second, outside the backtest boundary is the one to watch, signalling a possible reversal aligning with the other indicators. 3. The winning vote aligns with the similar DMI and MACD signals/indicators 4. REL STR is ascending from 30 and through 50 on the reinforcement votes but not exceeding 70 The reason I didn't enter this trade though is that the price (LONG) was less than the SMA 15 (although subsequent reinforcement votes took place when price exceeded the SMA 15 I try not to enter trades on reinforcement signals). Its quite a nice example. Not perfect by any means but I thought it would be helpful to put something on the forum as a discussion plot. As before, please do comment, let me know if there's any features I've got wrong (or missed ones that are right :-) all the best Richard [Edited by RichardL on 4/12/2005 2:49 AM]  Attached file : example.pdf (206KB - 1031 downloads) |
