Re : 90% (Pt&Fig systems and TS)

[Orphelin@xxxxxxx]

Dans un courrier daté du 10/08/98 23:31:08  , vous avez écrit :

<< 
 When putting this system on a P&F Chart is shows that it is 90% 
 profitable in many markets. The main point here is how realistic is this 
 system ?
  
 						MEM
 
 
 INPUT: LENGTH2(8), STDDEVUP(.75), STDDEVDN(-.75) ,length(7);
 
 IF BOLLINGERBAND(c,LENGTH2,STDDEVDN) CROSS ABOVE 
 BOLLINGERBAND(c,LENGTH,STDDEVDN) THEN BUY CLOSE STOP;
 
 iF BOLLINGERBAND(c,LENGTH2,STDDEVDN) CROSS BELOW 
 BOLLINGERBAND(c,LENGTH,STDDEVDN) THEN EXITLONG CLOSE STOP;
 
 if midpoint(open,9) cross below Bollingerband(c,length,stddevup) then 
 sell  (close) stop;
 if midpoint(open,9) cross above Bollingerband(c,length,stddevup) then 
 exitshort (close)stop;
 >>
 
You cannot apply a classical system to a pt&Fig chart without knowing that:

H,L,C are known AFTER the close and AFTER  a "boxsize*reversal" price
measurement (retracement).
You need to rewrite your system to apply it to Pt&Fig charts WHEN these
conditions are met, and this will perfectly work as expected.


(We also provide a DLL that builds P&Fig arrays from any regular chart.
In this case, you do not have to worry aboiut the above consideration (but you
will need to modify your indicators to run them with the array as input...for
the moment).

Sincerely,

Pierre Orphelin
www.sirtrade.com