Price Patterns

Discussion in 'Trading Software' started by traderix, Jan 20, 2004.

  1. traderix


    Does somebody trade with this software: "APS" Automatic Pattern Search" (Michael Harris´book"Short Term Trading With Price Patterns" ???

    Thank you for sharing your experience
  2. I've read the book of the same name if that is at all helpful.
  3. traderob


    how was the book?
  4. It has been a while since I've read the book so I don't remember it all that well. If you have specific questions I can check for you. A couple things that stick out in my mind were:

    1. The author provided E/L code, which was nice since I'm a TS user. The code was pretty simple, but I appreciated it.
    2. I contacted the author about something and his replies were prompt and to the point. He was very courteous.

    From what I remember from the book, the software basically does data mining. For example, look for four bar patterns that repeat more than once on MSFT and make money - stuff like that. I suppose it would be helpful when applied in context to overall market conditions.

    The only thing possible negative would be differentiating between "price patterns" and candlesticks. They are pretty much the same thing and both are only useful when applied judiciously.
  5. traderob


    Thanks, sounds interesting. Think I'll buy it.
  6. hektor


    I am running the software to scan about 500 stocks and indices.

    A scan for the Dow today gives you for example a positive scan for P&G.

    For ts2000i:

    {File:pG_D.txt Index:10 Index Date:20040116 PL:73.08% PS:26.92% Trades:52 CL:3}

    input: ptarget(5), stopl(5);
    variables: profitprice(0), stopprice(0);

    If h[2] > h[1] and h[1] > h[0] and h[0] > l[2] and l[2] > l[1] and l[1] > c[0] and c[0] > l[0] then begin
    Buy Next Bar on the open;
    If Marketposition = 0 then begin
    profitprice = O of tomorrow * (1+ptarget/100);
    stopprice = O of tomorrow * (1-stopl/100);
    exitlong next bar at profitprice limit;
    exitlong next bar at stopprice stop;

    if marketposition= 1 then begin
    profitprice= entryprice * (1 + ptarget/100);
    stopprice= entryprice * (1 - stopl/100);
    exitlong at profitprice limit;
    exitlong at stopprice stop;

    The problem is that you can not detemine a key figure for witch amount for example the high 2 days ago must be greater than the high 1 day ago.

    So (everything else unchanged) for example if the high 2 days ago is 100.49 and the high 1 day ago is 100.48 you get the buy signal as well as if the high is 99.

    On the other side you get no buy signal if the high is 100.50.
  7. traderix


    Hektor,Hi, thank you for your message.
    I´d like to buy this software, could you recommend it? How are the results?
    I think price patterns are more reliable than indicators.
    I appreciate your opinion on APS.
  8. hektor



    in my opinion the software is useful if you have a greater watchlist of not only the most popular stocks (It is assumed that all greater firms an funds runs this or similar systems with a lot of tests and have strategies for and against the patterns). If you want to follow only 2 or 3 futures or indices I think it is better and cheaper to do this via excel. I use the results as preselection and decide on additional indicators and patterns if i trade or not. The results are better as for example trading after some popular one or two day candlestick formations everyone sees at first view witch for me lost the ability for price projections.

    It costs a lot of time to prove every result of making sense and it is difficult to handle different signals. For example if you get an buy signal for the ES-future and at the same time a sell signal for the SPX-index.

    So I can only give you the advice to do the free test over an month or longer to track the results even if the code generation is disabled.
  9. traderix


    Hi, Hector, thxs a lot for your informations, it has helped me a lot.
    I will use this software for the scan function and filter the trades with an indicator.
    ADX,-DMI,+DMI? or would you recommend me another one?
    Perhaps a momentum indicator?