Gianno: The action lab program looks for patterns. Futures contracts have a limited life. For most trading purposes it is somewhere between one and three months. However, the action lab program can search over a longer period of time and in general needs to do so. So you need to tie the old and current futures contracts together to build a historical file in which to search for patterns. Linking the files together (splicing) can use many methods. Which method is best can create great debate. See this article for some more info. http://www.tradingrecipes.com/files/cntcontr.pdf Jack
I tried ratio-adjusted data to backtest a couple of systems yesterday and I got messed up results. I wonder why they even mention that type of data.
New version of Price Action Lab has an interesting feature that allows saving the conditions of patterns in a text file, one per line, in the following form h[3] > h[2] AND h[4] > l[2] AND h[2] > h[4] AND l[2] > l[4] AND l[4] > l[3] ;SPY.txt;LONG;Close2;7;7;% h[1] > h[0] AND h[2] > h[3] AND h[0] > h[2] AND h[3] > l[0] AND l[0] > l[2] AND l[2] > l[1] AND l[1] > l[3] ;SPY.txt;LONG;Close;7;7;% The condition is followed by the file name and a list of parameters that denote position entry, target, stop, etc. In their release they state: "The raw code generation ... allows code to be generated automatically in raw form in a text file from the search and database results for use as an input to neural network, walk-forward optimizers and other system building products. " My question is: does anyone know of a commercial program I can use with such text files that will generated a system based on the code found by Price Action Lab, preferably by walking-forward the data sample? Thanks
You can use it with may programs. NinjaTrader comes to mind right away. You can also use it with TS. There are also some programs that will read such a file and then use genetic programming to develop a system. I see PAL as a pattern generator in that sense. More work is required to get a full system. I just hired a programmer from India to develop an interface between PAL and NT. In between I will run a GP algortithm to build the system. It will be imported in NT automatically. This will rock.