Thanks. I did a search in the Yahoogroup messages and found a lot of good 
material to study. Most likely the system I am testing is not profitable in 
real trade.



________________________________
From: reinsley <[email protected]>
To: [email protected]
Sent: Tue, April 13, 2010 4:22:39 AM
Subject: Re: [amibroker] Re: Can Zig function be used in a system?

  



I don't know the author of this stuff.

BR

//Zigzag Validation
/*It is possible to use zigzag in a
backtest. the important thing is 
that the signals can only occur after the price has passed the 
reversal level 
*/

p = Peak(C,10); 
pb = PeakBars(C,10) ; 
t = Trough(C,10) ; 
tb = TroughBars(C, 10); 
_TRACE("p = "+p+" pb = "+pb+" t = "+t+" tb = "+tb); 
cp = Cross(p*0.9, LowestSince( pb==0, C)); 
ct = Cross(HighestSince( tb==0, C), t*1.1); 

Fall = Flip(Cp,Ct); 
Rise = Flip(Ct,Cp); 
_TRACE("fall = "+fall+" rise = "+rise); 
Buy= Cover= Cross(MACD() ,Signal() ) ANDrise; 
Sell= Short= Cross(Signal( ),MACD()) ; 

SetChartOptions( 0, chartShowDates| chartWrapTitle); 
GraphXSpace= 10; 
_N(Title= "{{NAME}} - {{INTERVAL}} {{DATE}} "+_DEFAULT_NAME( )+" :
{{OHLCX}} {{VALUES}}" );

BarColor = IIf(
rise, colorPaleGreen, IIf( fall, colorOrange, 
ParamColor( "Price Colour", colorWhite))); 

Plot( C, "", BarColor, ParamStyle( "Price Style", styleBar, maskPrice) ); 

Plot( Zig(C,0.1), "Zig", colorRed, styleLine); 
Plot( IIf(pb<tb,Peak( C,10)*0.9, Trough(C, 10)*1.1), "Zig", 
IIf(pb<tb,colorOrange,colorPaleGreen), styleStaircase); 

PlotShapes( shapeSmallUpTriangl e*Ct, colorPaleGreen, 0, L, -12); 
PlotShapes( shapeSmallDownTrian gle*Cp, colorOrange, 0, H, -12); 

PlotShapes( shapeUpArrow* Buy, colorGreen, 0, L, -24); 
PlotShapes( shapeDownArrow* Sell, colorRed, 0, H, -24); 



Le 13/04/2010 06:12, Tony M a écrit : 
  > 
>Thanks for the reply. I am backtesting a system that uses Zig
>function. The backtest result is good, but I suspect Zig function may
>artificially increase the profit. I want to use Explore to generate
>signal day by day and compare with the backtest result, is this a good
>method to find whether the system is profitable? It is very time
>consuming to use Explore to generate signal day by day and than compute
>the result. Any quick method to test if the system is profitable in
>real trading? Thanks.
>
>
>
________________________________
From: >reefbreak_sd <reefbreak_sd@ yahoo.com>
>To: amibro...@yahoogrou ps.com
>Sent: Mon, April 12,
>2010 7:57:12 PM
>Subject: [amibroker]
>Re: Can Zig function be used in a system?
>
>  
>One additional use for Zig is to see if a security has large
>enough price swings to trade profitably. 
>
>>Some low volatility securities become unprofitable to trade if you
>factor in commissions and bid/ask slippage.
>
>>ReefBreak 
>
>>--- In amibro...@yahoogrou ps.com,
>"Chris DePuy" <cde...@...> wrote:
>>>
>>> The way I have seen it explained is you would use zig to determine
>what "perfect" performance would be. Then compare it to your system
>that you are testing that does not use zig. The timeframes used in zig
>should be similar to those in your other system.
>>> 
>>> 
>>> 
>>> ----- Original Message ----- 
>>> From: Tony M 
>>> To: amibro...@yahoogrou ps.com 
>>> Sent: Monday, April 12, 2010 6:09 PM
>>> Subject: [amibroker] Can Zig function be used in a system?
>>> 
>>> 
>>> 
>>> 
>>> I am new to Amibroker and I read from the Amibroker UserGuide that
>the Zig function may looking into the future. Does this mean the Zig
>function can not be used for any trading system? And how do I know if
>the Zig function is skewing the backtesting result?
>>> Thanks,
>>> Tony
>>>
>
>
>

 


      

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