Elephant walk trading system-afl to code

#1
hi experts

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

HTML:
 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
recommendation.

Here is an attempt-which is not perfect-can be improved by experts
HTML:
Plot(C,"close",Colorcycle,styleCandle);
MA20 =MA(C,20);
Plot(MA20,"ma20",colorBlue,styleThick);
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.
thanks
ford
 
#3
@ Amit, same thing just different names

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

e.g.

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

Similar threads

Broker Special Offers

Intraday Higher Leverage

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

Name:Phone:
Email:City:
State:
Are you a day trader?