- ago
Hi, I've been trying for some time to trade the ChikouSpan, and I have managed to backtest it successfully. I've seen your published warning that the indicator "Peeks ahead) but, ... I still want to try to trade it. Unfortunately, I have not succeeded in getting any full strategy to actually "trade" it (send signals for any orders at all) either to a dummy acct or my own trading account in ThinkorSwim.

Here is the sample strategy...
Open at the market (on the minute) when candle close is less than Chikouspan (bars 26) of 1 bar ago.

Exit at the market after a minute.

That's it. Any suggestions what I can do to get this strategy to create the acual trading signals (orders) that appear just fine when I backtest??

Many thanks.

Sam
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Cone8
 ( 29.06% )
- ago
#1
Why don't you show us what you're doing? Post an image or the code.

Edit: Strike that. ChikouSpan is precisely the current Close moved back 26 bars. So if you compare the current close to the ChikouSpan bars ago period (26), it will always be precisely EQUAL, and never less or more.
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- ago
#2
Ok but the 1 candle look back changes the outcome. This logic back tests fine but will not place trades. That’s my problem.
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Glitch8
 ( 12.31% )
- ago
#3
You can’t trade it because we don’t know what the closing price is 26 trading days from now.
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- ago
#4
I've continued to play with this strategy line these past few months, so I've been radio silent but ...

(Cone) determining the close price 26 bars ago should not be the reason why I cannot produce trade signals with the basic strategy line provided above, when in fact it will backtest quite nicely, producing both closed and opened trades.

(Glitch) Yes, the Chikou (26) is theoretically equal to price, but in practice, there is variation from minute to minute.
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- ago
#5
Not sure this is exactly the problem you want to solve, but ChikouSpan works very accurately during backtests only because it already has the data from the last 26 bars. It's like a Monday's newspaper (you already know everything happened). In order to be really predictive, you should specify 26 bars ago.
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- ago
#6
Thanks. Yes, I do set the lookback at 26 bars in (nearly) all cases, but my strategy compares the current candle close with the ChikouSpan (26) of one (1) bar prior to the current bar (see below):

Here is the sample strategy line to open a trade, which works just fine when backtesting, but will not throw trading signals....

"Buy at Market when Close is less than or equal to ChikouSpan (26) of 1 bar ago"
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- ago
#7
QUOTE:
"Buy at Market when Close is less than or equal to ChikouSpan (26) of 1 bar ago"


Try adding the qualifier "N bars ago" and specify 26.
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Glitch8
 ( 12.31% )
- ago
#8
To be clear, ChikouSpan is a "peek ahead" indicator, so it shouldn't be used in backtesting, and cannot generate signals for live trading.
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