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I recently posted a ZigZag confirmed indicator in the Amibroker
library.
If you truly believe in EW, try this:
plot two ZigZag functions using different % retracements on a chart.
Add a param function to adjust the % retracements till you get an EW
pattern.
In my work, I've never been able to confirm the EW theory on real
world data.
downhillspeedster
--- In amibroker@xxxxxxxxxxxxxxx, "Bob Jagow" <bjagow@xxxx> wrote:
> Dave,
> Re "For me personally to have "faith" in an EW system, I'd want to
backtest
> it
> somehow. This means describing it so the actual trading signals
don't
> change
> over time. If they have to be delayed until they're certain, well,
that's a
> system limitation; hope it still performs well. If the signals
can't be
> stated in a stable way, how would you know if the system works
well?",
> previous counts can always change unless you wait for a 5 or a C.
> For example, a 3 will change to a C when the current bar's low
penetrates
> the 1's high.
> 3=>C isn't that big of a deal because PTI would have warned earlier.
>
> Bob
>
> -----Original Message-----
> From: Dave Merrill [mailto:dmerrill@x...]
> Sent: Thursday, June 17, 2004 11:34 AM
> To: amibroker@xxxxxxxxxxxxxxx
> Subject: RE: [amibroker] Re: Identifying Elliott Waves using AFL
>
>
> > A complaint that I've heard many times about Advanced Get, which
does
> > a marvelous job of identifying and labeling the E.W. pattern, is
that
> > it changes the E.W.-labeled points as new data is added. Anyone
who
> > truly understands the nature of the E.W. pattern realizes that the
> > pattern DOES evolve as new information (data) is added in time.
So
> > that particular software algorithm simply reflects this 'updating'
> > process, and RIGHTLY so! One just needs to understand that this
is
> > the nature of the E.W. model as applied to financial markets.
> > Whether or not USING this DYNAMIC information for profitable
trading
> > purposes is 'practical' or not, as Dimitris has astutely pointed
out,
> > is a whole different story, and I wholeheartedly agree with this!
> > THAT issue is best left to another trading systems 'strategy'
forum.
> >
> > Buzz
>
> While others, yourself included, may use mechanical scans only to
find
> things to chart or otherwise examine manually, I'm partial to fully
> mechanical trading, if for no other reason than because the results
of an
> approach can be validated through backtesting. When signals change
as more
> data is added, this makes it very hard to know how the system would
have
> behaved at the time.
>
> Check out almost any Zig-based system -- it'll knock our socks off
with
> past
> data, because the signals you see from here have already
been "adjusted" by
> data that at the time hadn't happened yet. I've written a confirmed-
zig
> system, that trades only when the zig trend has progressed far
enough that
> the corner being traded won't disappear, and trust me, it's way less
> impressive.
>
> For me personally to have "faith" in an EW system, I'd want to
backtest it
> somehow. This means describing it so the actual trading signals
don't
> change
> over time. If they have to be delayed until they're certain, well,
that's a
> system limitation; hope it still performs well. If the signals
can't be
> stated in a stable way, how would you know if the system works well?
>
> Dave
>
>
>
>
> Check AmiBroker web page at:
> http://www.amibroker.com/
>
> Check group FAQ at:
> http://groups.yahoo.com/group/amibroker/files/groupfaq.html
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