i found the holy grail
- Thread starter dumbgai
- Start date
I've found the grail several times. The best grail used information that wasn't available at the trade time [bad testing, used an indicator based on the close of the bar and assumed intrabar entries]. The second best one ignored what happens inside a bar and assumed certain things about the order of occurence of the high and low.. that was a great grail until I tested it on tick data of course... I'm working on a grail currently but this time I'm starting with tick testing...
Hey fractals, good post.
That's what I constantly see around here. I like real PA analysis, but around here, it's always after the fact. No one ever posts their thoughts on the chart as they were making their decisions based on their rules. Like, hey I can see to enter on that pullback in a uptrend! But what were you thinking, when you entered at the time? Why did you enter? How many HHs did you see? What made you assume it was another pullback and not a reversal, etc.? You get the idea. Anyway, nice post.
commissions are the smaller of the two problems (and could actually be ignored if needed). slippage (realistic bid/ask spreads and points of entry) has killed many of my "otherwise" promissing strategies. if one does not use actual bid/ask data, a realistic fixed amount slipage could be used as well (but probably needs to be adjusted frequently based on observations and current conditions).
breakdown and buy your data in tick form to build your bars....without this info (time and sales) every TS user has the grail........until they understand high frequency trading. Trade well.