a trading strategy based on Elliott Wave Theory - page 16
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Could you show the test results with a constant lot, e.g. 0.1 ?
(it's hard to navigate in the version given earlier, since a progressive lot scale is used)
And such a question
Start_SELLLIMIT=P+kstart*delta;
Start_BUYLIMIT=P-kstart*delta;
These formulas do not distinguish between a black candle and a white candle.
Could you comment on this?
The strategy does not explicitly distinguish between a white and a black candle. Only the midpoint of the previous candle is taken. And why should we make this difference intentionally, if it is already implemented in these formulas?
Start_SELLLIMIT=P+kstart*delta;
Start_BUYLIMIT=P-kstart*delta;
We do not know where the market will go on the next candle - up or down? According to the strategy, we only assume that the market will have the same movement speed, and nothing more. And that is why we put 2 opposite limit orders to account for 2 different price moves. Of course, there is also a third variant - the market will not go anywhere and will stand still. In this case none of the orders will be executed, of course, but only their parameters will be modified for the next period.
About the formulas.
If we are talking about velocity vector and maintaining the trend on the next candle, we should consider the black/white candle. It is reasonable to reason that this difference can be taken into account like this:
P=(O+H+L+C)/4;
delta=H-L;
vector=C-O; // depending on the type of candle the sign is changed
Start_SELLLIMIT=P+kstart*(delta +Kv*vector);
Start_BUYLIMIT=P-kstart*(delta +Kv*vector);
where
Kv is the speed factor.
or
Start_SELLLIMIT=P+kstart*delta + Kv*vector;
Start_BUYLIMIT=P-kstart*delta + Kv*vector;
If this reasoning does not fit your strategy, then it is not very clear how the formula S=V*T is included.
My formula:
Start_SELLLIMIT=1/4*(O+С+(1+4*kstart)*H+(1-4*kstart)*L)
Your suggestion:
Start_SELLIMIT=1/4*((1-4kstart*Kv)*O+(1+4*kstart*Kv)*C+(1+4*kstart)*H+(1-4*kstart)*L)
As it follows from both formulas we have two similar linear formulas, with different multipliers at O and C.
That's why, as I told in the first post on this page - we develop various variations of these linear formulas, fitting them with history, write books of 400 pages and guarantee a comfortable existence for many centuries, and bathe in the glory, as for example the famous Bill Williams! :o)))) http://www.itexpo.ru/moscow/ (His theory using the indicator with the beautiful name Alligator is in fact worth no more or less than all other theories! He simply achieves success through competent maneuvering - he will divide his position if the trend is going in the direction he wants. And on this basis he makes a conclusion and then convinces everyone else (for a fee; o)) that his indicator is an magic miracle! Although, if he had just once started to look what can be caused by scale in a random input or by entering another indicator, he would be surprised with the result that is comparable to the results of his theory :o))))). Only we would need a very good mathematician to share it with. For example, Vladislav could competently set the problem and improve the formulation on the basis of a series of converging transactions, to add solidity to the whole theory. ;o) This is how dissertations are written and everything in this world revolves!:o))))
My real account on the strategy I launched at the beginning of this month so far has a drawdown of -5.45%. So far we are waiting for the first star, so to speak, in the form of next month.
Agreed.
And increasing degrees of freedom should not lead to better results.
Any parameter introduced directs the system towards localising the range of authority.
It is a different matter what results are in this range. One must think that in this case it is positive.
(meaning that the programmer has an additional criterion, in this sense he gets more freedom to choose)
Better said, more freedom of choice for tinkering.
In this case, it is not a fit, but the introduction of a characteristic parameter.
Does the strategy give profits when tested at opening prices (quick method) ?
Does the strategy give profits when testing on opening prices (quick method) ?
It does too. The profit margin with M1(all ticks) is 5-10%. I just think the result is more reliable with all ticks, and therefore I do not use M1 (fast method).