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#1 Posted : Tuesday, February 7, 2006 7:20:45 AM(UTC)

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Joined: 4/27/2005(UTC)
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Location: Italy

Dear all, A number of indicators making use of the two above mentioned functions have been circulated with the aim of showing the ratio at higher timeframes. I suspect that using these indicators for testing systems in higher timeframes in MS EOD produces an element of hindsight that generates better results than obtainable in real life. I suspsect that this is due to the fact that data for the current week is dynamic while data in history is fixed. This can explain differences observed in System Tester between results obtained with indicators using the above functions + daily data AND normal indicators with weekly data. The conclusion would be not to use indicators with the above PP functions embedded in them and higher timeframes in System Tester. Could somebody with more experience in these functions confirm this point? Thanks. Maurizio
#2 Posted : Wednesday, February 8, 2006 5:15:37 PM(UTC)

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Joined: 4/24/2005(UTC)
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Location: Canada

Minnamor This will happen for ANY tools that are computing higher the time frame price (OHLC, MP(),Typ(), WC() etc.) from a lower time frame data. I believe this behavior should be OK even for back-testing if you make sure in your system tester that you code the trading signal based on a higher time frame indicator to be done or looked for its value only ONCE for every N bars (in this case Time Factor should be equal to N). You can check the time "reference" in the higher time frame by using the TimeCapsules. In this way you will see where the bar in the higher time frame starts and ends. The traders using daily charts will have much less options than those using Intraday charts, as the most usable higher time frame will be weekly (TF=2). Guara
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