Help needed regarding an issue in AFL

akhill

Well-Known Member
#1
I have an AFL that generates buy and sell signals based on a set of conditions.

I have been testing it on the live market from last 3 days. today I observed that the afl gave a sell signal at 5814 at 12:02 PM. Later after 5 minutes, when the market has been pulling back to higher than 5814, the sell signal in the candle at 12:02 PM is disappearing and reappearing based on the current market price.

What if I had shorted/sold the scrip at 12:02 and suddenly the sell signal disappears, what am I supposed to do ?

On the first hand, why does this problem occur and how can I eliminate this ?

some one please throw light on this.
 

mastermind007

Well-Known Member
#2
I have an AFL that generates buy and sell signals based on a set of conditions.

I have been testing it on the live market from last 3 days. today I observed that the afl gave a sell signal at 5814 at 12:02 PM. Later after 5 minutes, when the market has been pulling back to higher than 5814, the sell signal in the candle at 12:02 PM is disappearing and reappearing based on the current market price.

What if I had shorted/sold the scrip at 12:02 and suddenly the sell signal disappears, what am I supposed to do ?

On the first hand, why does this problem occur and how can I eliminate this ?

some one please throw light on this.
First the GOOD Part:

In most cases, Signals on a Candle are not considered valid until the candle on which it forms is closed, as in, candle subsequent to it has started forming. This scenario is perfectly valid and will occur with almost all indicators and if you are risk taker type, you will jump in at first signal and deal with consequences. If you are being practical, you will wait for candle to close and see if signal survives. I've taken both approaches and honestly still have all my fingers intact, but I do realize the risks in Approach1.


the BAD part
Depending upon where you got your AFL from, there are 1000s of ways in which a skillful programmer can make AFL look at the future quotes. What this means in charts parlance is that, it will look at prices that on right to make trading decisions on left. This will create almost near perfect trading results in back-testing but will be a nightmare to use in real trading. In short, this is a CON afl. Only way to tell that would be to have a look at the code.
 

akhill

Well-Known Member
#3
Well... I figured out it is a con afl, because when i back tested, its giving near perfect results and amazing profits that i can retire with a couple of months' profits. :lol:
 

mastermind007

Well-Known Member
#4
Well... I figured out it is a con afl, because when i back tested, its giving near perfect results and amazing profits that i can retire with a couple of months' profits. :lol:
Great!!! Spread the CON out here ... Lets dissect it and see if its got something worthwhile in it...
 

colion

Active Member
#5
I have an AFL that generates buy and sell signals based on a set of conditions.

I have been testing it on the live market from last 3 days. today I observed that the afl gave a sell signal at 5814 at 12:02 PM. Later after 5 minutes, when the market has been pulling back to higher than 5814, the sell signal in the candle at 12:02 PM is disappearing and reappearing based on the current market price.

What if I had shorted/sold the scrip at 12:02 and suddenly the sell signal disappears, what am I supposed to do ?

On the first hand, why does this problem occur and how can I eliminate this ?

some one please throw light on this.
Have you checked to see if your code looks into the future. The disappearance of a signal suggests that might be the case. Using functions that look into the future can be very misleading.
 

TraderRavi

MM is the holy grail
#6
I have an AFL that generates buy and sell signals based on a set of conditions.

I have been testing it on the live market from last 3 days. today I observed that the afl gave a sell signal at 5814 at 12:02 PM. Later after 5 minutes, when the market has been pulling back to higher than 5814, the sell signal in the candle at 12:02 PM is disappearing and reappearing based on the current market price.

What if I had shorted/sold the scrip at 12:02 and suddenly the sell signal disappears, what am I supposed to do ?

On the first hand, why does this problem occur and how can I eliminate this ?

some one please throw light on this.
ye AFL chu bana rahi hai aur kuch nahi :lol:
 

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