Elephant walk trading system-afl to code

hi experts

Here is trading system that looks different from others, and is based on largeupbar or largedownbar.

 code FOR AFL for Oliver Velez'
 Elephant Walk trading system?

The system waits for a Large up bar OR Candlestick bar with a
Large lower tail (elephant bars) to enter Long, with a Stop just
below the Bar Low, then waits for the stock to rise AND selling
on another Large up bar that is well above the 20-period moving
average (exhaustion elephant bar).

There are also incremetal buys
after the above entry when there is a single down bar that is
completely retraced to the upside (bar ignored).
There are several
youtube videos that outline the system - search for elephant
walk,OR there is a pdf presentation at http://tinyurl. com/mz9wvkk
<http://tinyurl. com/mz9wvkk> .

System can also go short with the
same trading rules in reverse - Velez claims profits happen
faster to the downside.Seems like a very simple but powerful
trading system AND I was wondering how it backtests either on
daily OR intraday prices - 5 Min bars seems to be Velez main

Here is an attempt-which is not perfect-can be improved by experts
MA20 =MA(C,20);
Largeupbar =C>O AND (O-L)>0 ;//define large up bar 
stoploss = IIf(Largeupbar,L-0.01,0);

Buy=Cross(C, Largeupbar);

Sell=Cross(stoploss, C);

shape = Buy * shapeUpArrow + Sell * shapeDownArrow;

PlotShapes( shape, IIf( Buy, colorGreen, colorRed ), 0, IIf( Buy, Low, High ) );
//ps This code is a trial & error attempt-
// this code doesnt work- dont try 
//this needs to be improved.
Pity in the city is
so far i cant find any such large upbar or largedownbar-just tried once.
@ Amit, same thing just different names

@ ford consider opening gaps also as a part of the WRB/Elephant bar


Range  = 	IIf (L > Ref(H,-1),  H - Ref(H,-1),	// Gap UP
		IIf (H < Ref(L,-1),  Ref(H,-1)  - L,	// Gap DN
:) Happy

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Are you a day trader?