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Craig
Let's not make fun of the Zig Zag Indicator. Years ago, I started playing
with it, not having read anything in the book (always skip manuals) and came
up with the absolute bestest (as my 8 year old is wont to say) system ever.
Worked with everything! Paper traded it for a while before I noticed that
today's calculation (results) were different tomorrow.....
Called the old man. He couldn't stop laughing. Felt pretty stupid and
wasted a lot of time and energy.
Oh well, back to the proverbial drawing board.
Regards
Guy
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Craig DeHaan
> Sent: Saturday, August 22, 1998 10:38 PM
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Weekly Pick (long), ...picking weakly
>
>
> Adam,
>
> Your Price Oscillator System formulation, tho testing highly profitable,
> I fear might tread in the land of Zig-Zag induced treachery.
>
> To wit: Notice how the oscillator amazingly always turns back toward
> zero when, without knowing the future arrival of the next peak or trough
> there would be no mathmatical reason for such an indicator movement
> reversal. This is happening because the Zig Zag 2% criteria called for
> in the Peak and Trough functions knows in retrospect when price moves to
> create either a 2% peak or trough. As you move forward from today any
> new buy/sell signals will possibly reverse themselves as new data is
> added that creates new 2% price troughs or peaks.
>
> As MSWIN help states, "Be forewarned, that the last leg (i.e., segment)
> of the Zig Zag is dynamic, meaning that it can change. Therefore, be
> careful when designing system tests, experts, etc. based on the Zig Zag
> indicator."
>
> It sure tested pretty. Even one of my favorite dogs, WDC, did +13,640%
> in 24 mos. (read a 136 bagger). I think you need to establish a fixed
> or individually optimized oscillator criteria, something similar to
> Steve's Forecast Oscillator(Close,4) crossing select trigger levels to
> avoid this situation. If not for that, you might have stumbled on the
> "Holy Moley" for real! Powerball, anyone?
>
> Craig
>
>
> Von Hef wrote:
> >
> > Hi Onno,
> > I have given more detail in other postings to John
> > and Steve, but if you have missed them or have
> > other questions, I would be glad to share with you
> > more info. What would you like to know?
> > Adam.
> >
> > -----Original Message-----
> > From: Onno Goedknegt <goedkneg@xxxxxx>
> > To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
> > Date: Saturday, August 22, 1998 9:04 PM
> > Subject: Re: Weekly Pick (long), ...picking weakly
> >
> > >Thanks Adam, for sharing you trading ideas with us!
> > >
> > >Are you able and willing... to share your trading system
> > >more in detail with us?
> > >
> > >Thanks,
> > >Onno
> > >
> > >At 13:20 22-8-98 -0500, you wrote:
> > >> Thanks John and Steve for your valuable insight!
> > >>My system is also mechanical and I mostly deal in the Futures market,
> > >>so I will post my system test using Lumber also. First I decided
> > >>to use a mechanical system to help remove the "emotions" from
> > >>my trade decisions. Also this system is new (I am also a little
> > green.....to
> > >>trading) so I am still testing this on different markets.
> > >> This system simply uses a crossing oscillator of PEAK and TROUGH to
> > >>trigger buy and sell signals, so far there seem to be little fitting
> > needed
> > >>to
> > >>apply to other markets, but my testing is not yet exhaustive. It could
> > >>easily be
> > >>modified for different trading styles such as "The Trend Is
> Your Friend"
> > >>and other rules.
> > >> PLEASE feel free to critique, suggest, comment or "warn of impending
> > >>danger".
> > >>I value the experience thats in this group!
> > >> Adam Hefner
> > >> VonHef@xxxxxxxxxx
> > >>
>
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