Anyone looked at this stratagy?

[A Dashing Blade]

As discussed on this thread.

http://www.elitetrader.com/vb/showthread.php?threadid=60313

Have been mintoring the thread and looking at the concept's application to other markets (Dax & Bund), the trouble is that it's impossible to backtest.

Nevertheless . . . .

 

[Directional]

it should be codeable in something like TS. the tricky part is correctly getting TS to recognise divergence since its somewhat a subjective setup...

I've read the thread through and it looks like a sound method - i'd be similarly interested in seeing this tested on a dax/bund chart

 

[tech_trader]

I backtested the program using several different methods of identifying divergence. I was not impressed with any of the results.

it should be codeable in something like TS. the tricky part is correctly getting TS to recognise divergence since its somewhat a subjective setup...

I've read the thread through and it looks like a sound method - i'd be similarly interested in seeing this tested on a dax/bund chart

 

[A Dashing Blade]

Fwiw, I'm monitoring it from work on Reuters, I use a very short term macd as well as the cci indicator, both have to diverge to confirm the trade. This seems to eliminate a significant proprtion of false signals.