Parabolics Charting v. Strategy
Author: StreetSmart
Creation Date: 5/8/2009 11:50 AM
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StreetSmart

#1
I can create a parabolic scenario on a chart but I can't find a way to reflect it in a strategy.

The problem is that the strategy 1) has you always "in" [immediately buying again after you're stopped out]; 2) Even though single open position is chosen, it still uses multiple positions; 3) There doesn't seem to be a way to have it perfom on a daily basis based on a 3 month chart.

I can make a chart that has these entry and exit positions but the strategy can't seem to match the chart even if the same perameters are entered.
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Eugene

#2
Let's break it down into small pieces so we can understand what you're after: your own strategy (where's the code?) or rule-based, what is "a Parabolic scenario", what is "a 3 month chart" and why should that perform on a daily basis and so on, OK?
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StreetSmart

#3
Not my own strategy -- using the rules-based Parabolic Strategy for enter and exit (no shorts and no covers).

If I simply open a chart, click technical indicators, click parabolic... it makes a chart with the parabolic Stop and Reverse (SAR). Perfect! Thats exactly what I want and I can make the adjustments to the accelleration and decelleration as desired.

However, if I use the rules based Parabolic Entry and Exit strategy, it does not follow the chart even if I use the exact same perameters as the chart.

If I use the same peramerters in ATP, the Parabolic SAR responds differently in a 1 month, 90 day, 10 day, etc chart. Meaning a 90 day chart allows longer swings than a 1 month or 10 day chart.
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Cone

#4
QUOTE:
if I use the rules based Parabolic Entry and Exit strategy, it does not follow the chart even if I use the exact same perameters as the chart.
I don't understand. What "it" does not follow the chart?

I would expect the response will be different in different scales. You don't?
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StreetSmart

#5
QUOTE:
I don't understand. What "it" does not follow the chart?


"It" is the rules-based strategy for the Parabolic SAR

Try it. Try making a simple chart (no strategy) and then just add the technical pattern of the Parabolic SAR (easier to read if you make the indicator a line rather then the default dots). Then see if you can re-create the entry and exit points that are on the chart in the Parabolic SAR strategy.

I can't. The pre-coded strategy won't run the strategy with a single (one) position (it makes multiple positions).
The pre-coded strategy will not allow you to be "out" of a position when the parabolic stop triggers (it immediately buys a new position on the next bar).

QUOTE:
I would expect the response will be different in different scales. You don't?


Exactly! Yes! But it will now allow me to change the time frames. (the way you can with a click in ATP)

Thanks for checking this out with me.
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Cone

#6
Okay, I "think" I understand what you're trying to say. I added a Buy and Sell Parabolic, opened the code in a Strategy Window, changed the dots to a line, and added the PlotStops() function. Here's the result:

CODE:
Please log in to see this code.

If you run this, you'll see that the line is the parabolic indicator value calculated at the end of the bar. However, the PlotStops() function shows you the bar on which the stop value is actually executed - the next bar. In other words, the stop dot is showing you the value of the indicator on the previous bar, when it was calculated.

I don't understand why this confuses so many people, because this is the way you already trade. You calculate your indicators, and then you enter the value for your stop and limit orders to be placed on the next bar. Think about it.

QUOTE:
But it will now allow me to change the time frames.
Why can't you change the timeframe? Are you familiar with the Scale control in the upper Data Panel?