Well, well dear jaykiru, this system is hypothetically a nice one but on live platform its an absolute murderer. It produces signals after the move, so when you test the chart after the market you are a rich guy but within market hours this will kill you or make you loose money because this also vanishes after making you take a trade.
Experiments in Technical Analysis
- Thread starter karthikmarar
- Start date
Hi Karthik,
I tried your MACD chart example. and it was running perfectly. But i wanted to draw a candle chart where there would be buy and sell signals, strong buy and strong sell signals etc. I tried and failed.
Here i am attaching a chart(the one that i tried) with the problem i am facing. I am also attaching afl for the two portions. The lower one is working perfectly (since it was written by you). need help in top chart.
Pls, if it is not much trouble, then please see the chart and give me some advice.
regards
ashutosh
I tried your MACD chart example. and it was running perfectly. But i wanted to draw a candle chart where there would be buy and sell signals, strong buy and strong sell signals etc. I tried and failed.
Here i am attaching a chart(the one that i tried) with the problem i am facing. I am also attaching afl for the two portions. The lower one is working perfectly (since it was written by you). need help in top chart.
Pls, if it is not much trouble, then please see the chart and give me some advice.
regards
ashutosh
Last edited:
Hello all,
I've been playing around with Amibroker a little.
I like the MACD zero lag this is alot better than normal MACD. Though I guess Anant says he doesn't use it?
I took a look at the mabiuts K1, its nice looking, but it looks to be lagging.
Since I'm somewhat of a newbie, I have a question for the seniors........do indicators really provide much benefit in trading? Or are they only useful in automated/mechanical systems for determining trend?
what are the key components of a winning system? Trend indication..... oscillator for trading the trend? volume indicator for determining tops and bottoms to aid the oscillator?
Trev
I've been playing around with Amibroker a little.
I like the MACD zero lag this is alot better than normal MACD. Though I guess Anant says he doesn't use it?
I took a look at the mabiuts K1, its nice looking, but it looks to be lagging.
Since I'm somewhat of a newbie, I have a question for the seniors........do indicators really provide much benefit in trading? Or are they only useful in automated/mechanical systems for determining trend?
what are the key components of a winning system? Trend indication..... oscillator for trading the trend? volume indicator for determining tops and bottoms to aid the oscillator?
Trev
Ashutosh
I just realized that I never posted a afl for the chart. In fact I dont have one which exactly plots the power dips etc on the chart. Currenly the following piece of code is used in my chart. Of course it does not identify all the points mentioned in the Indicator plot. This might help you. If you want a full code to reflect all the points then let me know. i will try to make during the weekend.
Anyway it is great to see your enthusiam and hardwork. All this will pay dividend soon.
warm regards
karthik
I just realized that I never posted a afl for the chart. In fact I dont have one which exactly plots the power dips etc on the chart. Currenly the following piece of code is used in my chart. Of course it does not identify all the points mentioned in the Indicator plot. This might help you. If you want a full code to reflect all the points then let me know. i will try to make during the weekend.
Anyway it is great to see your enthusiam and hardwork. All this will pay dividend soon.
Code:
_SECTION_BEGIN("System");
j1=(m1-s1>0) AND Cross(khw,0);
j2=khw>0 AND Cross(m1-s1,0);
j3=(m1-s1>0) ;
Buy=j3;
Sell=Cross(0,m1-s1);
Buy = ExRem(Buy, Sell);
Sell = ExRem(Sell, Buy);
GraphXSpace = 5;
PlotOHLC( Open, High, Low, Close, "", mycolor, styleBar | styleThick );
shape = Buy * shapeUpArrow + Sell * shapeDownArrow;
PlotShapes( shape, IIf( Buy, colorCustom12, colorRed ),0, IIf( Buy, Low, High ) );
GraphXSpace = 5;
/*dist = 1.5*ATR(10);
for( i = 0; i < BarCount; i++ )
{
if( Buy[i] ) PlotText( "Buy\n@" + C[ i ], i, L[ i ]-dist[i], colorCustom12 );
if( Sell[i] ) PlotText( "Sell\n@" + C[ i ], i, H[ i ]+dist[i], colorRed);
}
*/
kt=m1-s1;
Tp = Ref(KT,-1) == HHV(KT,3);
Vl = Ref(KT,-1)==LLV(KT,3);
Vx=Vl AND m1>s1;
Vy=Tp AND m1<s1;
PlotShapes( shapeUpArrow* Vx, IIf(m1<0,colorYellow,colorLime), 0, L, -10 );
PlotShapes(shapeDownArrow* Vy, colorOrange, 0, H, -15 );
_SECTION_END();karthik
Trev
Even I feel a lot more comfortable with the normal MACD.
In case of the Mabiuts K1 the very purpose or the concept makes it lagging. The idea was to reduce whipsaws and catch a good part of bug trends. The formula tries to ensure that the trend is in place before the entry is signaled. It is more suitable for medium term trades. Sometime I do wonder why all this talk of “Lag” when we all know it is impossible to catch the bottoms and tops.
Indicator do provide benefit…oops the current fashion is to say, “To hell with indicators It is all price action and volume”. Many a times I am amused to see the very person who says this has his charts filled up all sort of Indicators.
Anyway the indicators are reflections of Price action and they do help at least the uninitiated to understand better.
What are the components of a winning system?
A decent set of rules, Good Money management and most important.. disciple.
Oscillators are generally good in a ranging market. However they could be used for pyramiding and re-entry.
Volume for tops and bottom!! .. no .. can write a lot on volume.. may be some other time.
Regards
Karthik
Even I feel a lot more comfortable with the normal MACD.
In case of the Mabiuts K1 the very purpose or the concept makes it lagging. The idea was to reduce whipsaws and catch a good part of bug trends. The formula tries to ensure that the trend is in place before the entry is signaled. It is more suitable for medium term trades. Sometime I do wonder why all this talk of “Lag” when we all know it is impossible to catch the bottoms and tops.
Indicator do provide benefit…oops the current fashion is to say, “To hell with indicators It is all price action and volume”. Many a times I am amused to see the very person who says this has his charts filled up all sort of Indicators.
Anyway the indicators are reflections of Price action and they do help at least the uninitiated to understand better.
What are the components of a winning system?
A decent set of rules, Good Money management and most important.. disciple.
Oscillators are generally good in a ranging market. However they could be used for pyramiding and re-entry.
Volume for tops and bottom!! .. no .. can write a lot on volume.. may be some other time.
Regards
Karthik
Ashutosh
I just realized that I never posted a afl for the chart. In fact I dont have one which exactly plots the power dips etc on the chart. Currenly the following piece of code is used in my chart. Of course it does not identify all the points mentioned in the Indicator plot. This might help you. If you want a full code to reflect all the points then let me know. i will try to make during the weekend.
Anyway it is great to see your enthusiam and hardwork. All this will pay dividend soon.
warm regards
karthik
I just realized that I never posted a afl for the chart. In fact I dont have one which exactly plots the power dips etc on the chart. Currenly the following piece of code is used in my chart. Of course it does not identify all the points mentioned in the Indicator plot. This might help you. If you want a full code to reflect all the points then let me know. i will try to make during the weekend.
Anyway it is great to see your enthusiam and hardwork. All this will pay dividend soon.
warm regards
karthik
yes you are right, you never posted an afl for the chart. I was trying to create an aft for the chart (with full help of your afl for the MACD 1 part). and i just barbaad kar diya. But after looking through your code you posted here, i think i can try to manage it. (But will definately ask for your help if i fail)
thanks for the help
regards
ashutosh
Karthik,
Well stated. I agree, "Lag" seems impossible to avoid in all aspects when relying on technical analysis........utilmately the more you try to reduce Lag the more likely you are to catch a whipsaw......as far as I have seen.
my thought was incorporating a volume related device to provide confirmation of a reversal? as an extra confirmation.....I guess I may be talking about two different things.
argh its a tough conversation as this always tends to continue in a circular fashion.........where you can't add more as it reduces the trades and not necessarily increase profitability.......yet you can't increase profitability without adding more restrictions.......yet you reduce trades and miss profitable trades.
I guess there is no purely mechanical system.......with 99.9% success rate?
Trevor
Well stated. I agree, "Lag" seems impossible to avoid in all aspects when relying on technical analysis........utilmately the more you try to reduce Lag the more likely you are to catch a whipsaw......as far as I have seen.
my thought was incorporating a volume related device to provide confirmation of a reversal? as an extra confirmation.....I guess I may be talking about two different things.
argh its a tough conversation as this always tends to continue in a circular fashion.........where you can't add more as it reduces the trades and not necessarily increase profitability.......yet you can't increase profitability without adding more restrictions.......yet you reduce trades and miss profitable trades.
I guess there is no purely mechanical system.......with 99.9% success rate?
Trevor
U
Hi,
May i have the previledge to request a logical discussion by all serious knowledgable members on "TA" vis-a-vis "Mechanical/System Based" trading.
The specific "Data Mining Bias" ,conceptually understanding that the "Average No. Of Trades" does not necessarily increase the "Average Profitability".How much previous success is actually "A Coin Toss" luck/random.
There seems to be a phenemenon ,conceptual change,going world over with serious Traders,in our country also fast catching up.The established "Elliot Wave" , "Edward & Magee Type TA" even "Fibonicchi" is being rubbished & there past success is being attributed more to randomness.
It would be imprudent not to acknowledge the phenemenon.Hence i request all to participate ,so that to enrich my/our understanding & how to take advantage & leverage this knowledge.
My & our long trading proffession is strewn with loads of success/failure,
everyday Mkt humbels us & we strive to learn to excell,atleast by now all of us has identified & discarded few of our wrong beliefs.
Let us be not dogmatic & with a open mind seriously introspect,i yet find everyday, Fib ,Pattern MACD ,RSI,W % R ,working on LIVE Mkt,but the approach that .........."as Nifty / Sensex in 5th Down Structure,hence this is the best place to Short"......,this biasness i have discarded,let the Mkt tell me
let the chart unfold its story,though at the back of my mind i know the specific wave count or Fib level,this worry sitting on my shoulder increased my FEAR level,but this helps actually to filter,only very good convincing Buy signals to get my 100% commitment,otherwise even good signals get discarded.
Looking forward to a lively discussion though i am a MACD ,RSI ,Trendline,EW ,Pattern,Fib believer.
Asish
May i have the previledge to request a logical discussion by all serious knowledgable members on "TA" vis-a-vis "Mechanical/System Based" trading.
The specific "Data Mining Bias" ,conceptually understanding that the "Average No. Of Trades" does not necessarily increase the "Average Profitability".How much previous success is actually "A Coin Toss" luck/random.
There seems to be a phenemenon ,conceptual change,going world over with serious Traders,in our country also fast catching up.The established "Elliot Wave" , "Edward & Magee Type TA" even "Fibonicchi" is being rubbished & there past success is being attributed more to randomness.
It would be imprudent not to acknowledge the phenemenon.Hence i request all to participate ,so that to enrich my/our understanding & how to take advantage & leverage this knowledge.
My & our long trading proffession is strewn with loads of success/failure,
everyday Mkt humbels us & we strive to learn to excell,atleast by now all of us has identified & discarded few of our wrong beliefs.
Let us be not dogmatic & with a open mind seriously introspect,i yet find everyday, Fib ,Pattern MACD ,RSI,W % R ,working on LIVE Mkt,but the approach that .........."as Nifty / Sensex in 5th Down Structure,hence this is the best place to Short"......,this biasness i have discarded,let the Mkt tell me
let the chart unfold its story,though at the back of my mind i know the specific wave count or Fib level,this worry sitting on my shoulder increased my FEAR level,but this helps actually to filter,only very good convincing Buy signals to get my 100% commitment,otherwise even good signals get discarded.
Looking forward to a lively discussion though i am a MACD ,RSI ,Trendline,EW ,Pattern,Fib believer.
Asish
Hey Karthik,
Need your help again..(cant help it). Well I am not very well versed with afl, I m trying to study it. The code you posted yesterday, i tried it, could you pls (if it is not so much trouble) give me some guidance regarding the following code portion ( the codes marked with ///////)
After /// i have written something, Is it correct (mean, the way i have understood the code)
desperately needing your help
regards
ashutosh
Need your help again..(cant help it). Well I am not very well versed with afl, I m trying to study it. The code you posted yesterday, i tried it, could you pls (if it is not so much trouble) give me some guidance regarding the following code portion ( the codes marked with ///////)
Code:
for( i = 1; i < BarCount; i++ ){
if( Buy[i] )
PlotText( "Buy\n@" + C[ i ], i, L[ i ] - dist[i], colorCustom12 );
if( Sell[i] )
PlotText( "Sell\n@" + C[ i ], i, H[ i ] + dist[i] * 1.5, colorRed);
}
kt=m1-s1; ////////////////////////////kt = difference between m1 (12,26 macd) and signal (12,26,9)
Tp = Ref(kt,-1) == HHV(kt,3); ///////////Tp = Ref(kt, -1) or get value of kt one period ago, which should be equal to highest value of kt for last 3 periods
Vl = Ref(kt,-1) == LLV(kt,3); ///////////v1 = value of kt one period ago, which should be equal to lowest value of kt for last 3 periods
Vx=Vl AND m1>s1; //////////////
Vy=Tp AND m1<s1; //////////////
PlotShapes( shapeUpArrow * Vx, IIf(m1<0,colorYellow,colorLime), 0, L, -10 );
PlotShapes(shapeDownArrow * Vy, colorOrange, 0, H, -15 );desperately needing your help
regards
ashutosh
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