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[amibroker] Re: Safe to use Peak in backtesting ?



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No, it is never "safe to use Peak(C,3,1)if we..."
The reason is simple and refers to timing.
The formula will give the Peak bar, say, 5 bars before the very day 
you will be sure for the -3% change.
[sometimes, for higher %, the time distance may be weeks or 
months !!] 
So, in real conditions, you will be able to react tomorrow, after the 
detected signal, but, your backtesting has already reacted 5 bars ago.
Consequently, any backtesting using Peak() function will be 
unrealistic and, the more important, inapplicable.
If you forget the last leg, then your results will have only 
historical value, which will never see the light of application.
DT
--- In amibroker@xxxxxxxxxxxxxxx, "hmab1" <hossamb@xxxx> wrote:
> Hello,
> 
> I would like to AFL's Peak function with a 3% change parameter to 
> determine the last peak.  Since Peak depends on Zig, when is it 
safe 
> (i.e. not looking into the future) to use Peak ?  I.e. when would 
it 
> be ok to use Peak function in a backtest ?
> 
> Is the answer = it is safe to use Peak(C, 3, 1) if we are sure that 
> at least a 3% change (up or down) has occured in the price since 
the 
> peak ?
> 
> Thanks,
> HB


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