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FTTQ (Fisher Transform, Trend Quality)
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Author:  Fx93 [ Tue Apr 17, 2012 1:41 am ]
Post subject:  FTTQ (Fisher Transform, Trend Quality)

I first mention the Trend Quality study just for fun. I backtested the trend quality indicator going +/- 18.25 for six months with the TP being a 1999 price channel from 11/20/2009-6/1/2010, and it averaged over 250 pips/mo including spread. However, it lost 16 times in a row at one point. It counts on a big win being better than many small losses. I mention it just because I am interested in its long term profitability, I find it hard to believe that it would be too good. The settings I used are the same as in my FTTQ method.

The second method, FTTQ, I tested from 1/1-3/31/2012, and it averaged 265 pips/mo. including spread with a total of 187 trades on a 2 pip range bar chart. This is a pretty good method, but I see at times this indicator repaints: it will produce a signal about 3 bars back. It is a shame because I really like the FT peaks/troughs.

I was thinking someone could test this method with a FT that doesn't repaint, or that it may still work in a forward testing environment.
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