hi experts
Here is trading system that looks different from others, and is based on largeupbar or largedownbar.
Here is an attempt-which is not perfect-can be improved by experts
Pity in the city is
so far i cant find any such large upbar or largedownbar-just tried once.
thanks
ford
Here is trading system that looks different from others, and is based on largeupbar or largedownbar.
HTML Code:
code FOR AFL for Oliver Velez'
Elephant Walk trading system?
The system waits for a Large up bar OR Candlestick bar with a
Large lower tail (elephant bars) to enter Long, with a Stop just
below the Bar Low, then waits for the stock to rise AND selling
on another Large up bar that is well above the 20-period moving
average (exhaustion elephant bar).
There are also incremetal buys
after the above entry when there is a single down bar that is
completely retraced to the upside (bar ignored).
There are several
youtube videos that outline the system - search for elephant
walk,OR there is a pdf presentation at http://tinyurl. com/mz9wvkk
<http://tinyurl. com/mz9wvkk> .
System can also go short with the
same trading rules in reverse - Velez claims profits happen
faster to the downside.Seems like a very simple but powerful
trading system AND I was wondering how it backtests either on
daily OR intraday prices - 5 Min bars seems to be Velez main
recommendation.Here is an attempt-which is not perfect-can be improved by experts
HTML Code:
Plot(C,"close",Colorcycle,styleCandle);
MA20 =MA(C,20);
Plot(MA20,"ma20",colorBlue,styleThick);
Largeupbar =C>O AND (O-L)>0 ;//define large up bar
stoploss = IIf(Largeupbar,L-0.01,0);
Buy=Cross(C, Largeupbar);
Sell=Cross(stoploss, C);
shape = Buy * shapeUpArrow + Sell * shapeDownArrow;
PlotShapes( shape, IIf( Buy, colorGreen, colorRed ), 0, IIf( Buy, Low, High ) );
//ps This code is a trial & error attempt-
// this code doesnt work- dont try
//this needs to be improved.so far i cant find any such large upbar or largedownbar-just tried once.
thanks
ford