Is the Holy grail a viable method??

For example, do we ignore this trade just because ADX dropped
below 30? Probably not, to me it looks like the trend is still going
up.
 

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On the testing, is the entree automatic when the stock hits 20 ema or does it buy the high of the previous bar and are stops right below bar that penetrated 20ema. Time frame was dailies??
Can u test intra day??



Quote from Lightningsmurf:

and the H.G. pattern doesn't look very good. I tested it across CIEN, IBM, GE, AMZN, HAS and none of them performed well over 1000 day period.

I should point out that I didn't do the coding, I just had it laying around, so there might be some problems there.

Anyone else find especially good results with this pattern across several equities?
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Quote from omcate:



If there is a Holy Grail for trading, everyone will be millionaire. Who is going to serve me dinner at a restaurant ?



:p

:cool:

:D
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This is just a method that was popularized by Linda Raschke.
Apparently, she feels this method is as close as you're gonna
get.
 
Who needs a Holy Grail? Just find a system with Profit Factor > 2.0 and Sharpe ratio > 4.0 and you'll have no problems following the signals. Define precise measures to determine when the underlying dynamics of the market are no longer valid within the parameters of the system and adjust or stop using the system.

It can and is being done by those in the <1% club.
 
As I mentioned before, I didn't do the coding on this particular program, so I'm not 100% comfortable with saying in absolute terms whether it works or not. I went back and looked at the trades generated on the IBM daily chart and saw that the exits seemed to be a bigger problem than the entries - the program was holding for too long. I tossed in a simple moving average cross over exit and things improved considerably. This makes my think that by using a more structured exit (maybe a trailing ATR) you'll find something that works well on some stocks. You might want to add another filter - ie volatility.

Best of luck. I'd be interested to hear what others think about this pattern and its applicability to current market conditions.
 
Quote from pretzel:

I did a backtest of a "Holy Grail" based method a few months ago with WealthLab - profit ratio is more than 3.0.

pretzel
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I am confused. How the heck can anyone test a scalping system with anything but tick data?

nitro :confused: :confused:
 
Quote from nitro:


I am confused. How the heck can anyone test a scalping system with anything but tick data?
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or at all without actually trading it?
 
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