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A few more inputs on this:
When I got my TS can't remember which version, I barely knew how to handle
windows... let alone program anything. When I did my first code lines, I
realized immediately Eod Data means nothing for real time trading. Why? well
simply part of planning things is to drill through all details. It was obvious
an OHLC bar does not represent a day's trading, only an Open a High a Low and a
Close. What about in between ???? So I switched to intraday data, and worked
all systems on intraday data only. Results were nowhere close, sometimes
better, but usually much worse.
Yes the TS stop is flawed, yes traders should figure this out, and yes Omega
should may be refrain from making people believe Eod results are for real. In
the end it is the users though who make their own decisions. Why do people
smoke and drink while knowing it kills them? They say people die anyway. What
they don't realize is the suffering they and their family may incur in between.
Why do people use wrong Trailing stops? They assume it is the reality. What
they want is the money anyway, and in the past it would have worked. But if
they don't check, they'll lose out to those who did. Would you play a money
game without knowing the rules of the game you play???
Gwenn
| -----Ursprungliche Nachricht-----
| Von: TradingSys@xxxxxxx [SMTP:TradingSys@xxxxxxx]
| Gesendet am: Monday, September 20, 1999 8:24 PM
| An: robert.cummings@xxxxxxxxxxxxxxxx
| Cc: omega-list@xxxxxxxxxx
| Betreff: Re: Trailing stops are invalid
|
| In a message dated 9/20/99 11:22:12 AM Pacific Daylight Time,
| robert.cummings@xxxxxxxxxxxxxxxx writes:
|
| > Problem
| > with this trailing stop business is it not known to the average lay
person.
| >
| > It took people like Mark Brown to point this out to me and others on this
| > list. Omega has known about this situation for a longtime yet do not
| > disclose it to the public. A guy that buys Omega's software does the
| > testing using trailing stops and figures the results are reliable. Using
| > this information to trade real money and not being told about this flaw
| > could cost him a lot of money.
|
| I dusted off my TS4 users manual....lets see...Chapter 14: Testing your
| trading systems (page 354 in mine) spends two pages talking about how TS
| handles historical data and how unreliable results can be based O,H,L,C data.
|
| Of course, anyone who ever drew a single bar on a chart by hand knows that
| too. If memory serves TS3, TS2, TS1 manuals talk about this too. I've had
| dozens of clients who use TS. Unfortunately, few of them have ever read the
| manuals (much less gotten their hands dirty after hitting F12 (hot key to
| power editor, for all those who haven't)...that's too much work. It's much
| easier to ask Mark, or Joe, or Jake....and then you'd better hope they know
| what they are talking about and are honest too. People wonder why 90% lose.
|
| Good Luck!
|
| TS
|
| (Not a TS fan, not a TS employee, but hey I have read the manual)
|
| Just got the MB post.
|
| He said:
| "Its sort of like buying a car and the manufacturer not telling you that if
| you are hit from the rear hard enough. It will jamb the doors shut and burn
| you alive! I lived in a little town once and 3 youths were killed in this
| manor."
|
| MB, it is more like this:
|
| If you drive your car into a brickwall at 100 miles per hour you might get
| hurt! Therefore: WARNING! DO NOT DRIVE YOUR CAR INTO A BRICK WALL AT 100 MPH!
|
| I lived in little town where two youths did this after a few beers. Just as
| tragic. Blame Bud? Blame Ford?
|
| Omega did not invent O,H,L,C bars. Nor are they burning anyone alive. The
| same trouble existed doing this kind of study before computers, much less
| before Omega. They just made it easier and faster to do a bad study.
|