DislikedHello Team Aphid!
Wow! Just finished reading this thread and it is very impressive what you folks have done here! Just wanted to add my thanks to you as well.
In my study of your system, I noticed something which may fall into the category of "If it ain't broke, don't FIX it!" or perhaps a splitting of hairs, but here goes....
I notice that in your instructional PDF on post #35, you say to label the fibo levels as follows:
LEVEL 0.000 - Description: "Swing"
LEVEL 0.382 - Description: "38.2 - 2 lots"
LEVEL 0.618 - Description: "61.8 - 1 lot"
LEVEL 1.000 - Description: "Enter - 1 lot"
LEVEL 1.618 - Description: "161.8"
Please correct me if I am wrong, but I do not believe this Fibo label setup is correct. It appears to me that your Fibo retracements are displayed backwards. The retrace levels of 38.2 and 61.8 should be shown as a percent of the total price move from SWING to ENTRY (BAT line break). Logically then, shouldn't a 38.2% retrace occur before a 61.8% retrace? The way you currently show them puts a 61.8% retrace AHEAD of a 38.2% retrace which I do not believe is correct or logical.
Unless I am missing something and am totally off-base, then I suggest the following labels and changes to drawing the Fibos:
LEVEL 0.000 - Description: "Enter - 1 lot"
LEVEL 0.382 - Description: "38.2 - 2 lots"
LEVEL 0.618 - Description: "61.8 - 1 lot"
LEVEL 1.000 - Description: "Swing"
LEVEL -0.618 - Description: "-61.8"
The "Swing" needs to be at level 1.000 because if price retraced back to that level, it would represent a 100% Fibo retrace. The touch of the BAT line (trade #1 entry) should be at the 0.000 level. Also, you show level 1.618 which I believe should instead be level -0.618 (but should be labeled +61.8%) which represents an ADVANCE of 61.8% past the entry point in the desired direction of the trade. The final thing should be to make sure to always draw the Fibos starting from the SWING point and move up or down to the ENTRY point. This will ensure that your fibo retracements are always displayed in the correct direction.
Again, this may seem irrelevant or like "splitting hairs" to some and if the current method of labeling is working for you, then don't change anything. I just wanted everyone to be on the same page with the Fibo's and again, if I have missed something, then please feel free to correct MY logic.
Assuming that I am correct with this, I wonder what effect it may have on backtesting results, if any?
Thanks again TA for allowing us to use THE BAT! I hope to start demo trading it this Monday.
P.S. I've attached a couple of charts to show what I'm speaking about.Ignored
In my opinion if you put 2 Lots on Fib level 0,382 and the system fails, you will have extremely high drawdown risk.
I use this method for my live trading and there is a lot of false crosses.
Try forwartest and post here your results.