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In case this may help others, I'm sending to the list.
Message-ID: <336CB85A.1E84@xxxxxxxxxxxxxxxx>
Date: Sun, 04 May 1997 09:24:58 -0700
From: Johnonetoo@xxxxxxxxxxxxxxxx
Reply-To: Johnonetoo@xxxxxxxxxxxxxxxx
X-Mailer: Mozilla 3.01 (Win16; I)
MIME-Version: 1.0
To: MICHAEL J ARNOLDI <michael.arnoldi@xxxxxxxx>
Subject: Re: MY: ULTIMATE SIGNAL GENERATOR
References: <19970504.075358.11950.0.michael.arnoldi@xxxxxxxx>
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MICHAEL J ARNOLDI wrote:
>
> i am very excited & i would like to share my results with the group.
> i call this the " ULTIMATE SIGNAL GENERATOR" system.
> i wrote an exploration as follows:
> buy:
> TroughBars(1,L,3)=1
> sell:
> PeakBars(1,H,3)=1
> i tested it on several stocks & indexes and it's GREAT:
> eg. on NEM:22 signals generated, 15wins, 7 losses, 52% profit.
>
> any comments ? (after you tried it)
>
> mike
Mike...
I don't like to be the one to "rain on your parade" since I know exactly
how it feels to find a new idea or indicator that is soo good it's far
better than anything I ever found before. Well, if this happens I
imediately expect there's something wrong and I work hard to find what
that is. Unfortunately in the case of your "Ultimate Signal...." this is
the case as both troughbars and peakbars use the Zig Zag function. The
problem is best described in the text I copied from the Metastock help
file below.
The Zig Zag Trap
The Zig Zag indicator (see Zig Zag) uses 20/20 hindsight to filter out
fluctuations. It
shows only price movements that are equal to or greater than the amount
specified.
However, the Zig Zag indicator determines this "after the fact" (an
advantage a trader
doesn't have).
With that said, never use the Zig Zag indicator in a system test. It
will produce
results that are not attainable in real trading.
Good luck, and keep trying... John Rastutis
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