Not so fast..
This indicator looks fantastic - until you look under the hood! When viewing the source code, you'll see 2 lines (mq4 version):
Value1=Value;
Fish1=ExtBuffer0;
This is future information! i.e. The indicator values are calculated with the benefit of hindsight. Remove these 2 lines and compare .. it's not nearly as predictive. (BTW, equivalent code exists in the mq5 version - in case you're wondering!).
This indicator looks fantastic - until you look under the hood! When viewing the source code, you'll see 2 lines (mq4 version):
Value1=Value;
Fish1=ExtBuffer0;
This is future information! i.e. The indicator values are calculated with the benefit of hindsight. Remove these 2 lines and compare .. it's not nearly as predictive. (BTW, equivalent code exists in the mq5 version - in case you're wondering!).
What's the problem? How can it look into the future when the data is still unavailable? It uses the most current data to build the curve and yes, it repaints. But how is it looking into future?
The indicator is calculated from the present (index 0) to the past (incrementing index for each period - as defined by the period of the opened chart). For the present bar (i.e. index 0), we don't know the future, so the values Value1 and Fish1 are 0. When it takes a step back to index 1, it includes Value1 and Fish1 in the calculation. So the current bar is included in calculating the value for the 2nd to last bar. Thus the 2nd to last bar is based on future information.
This indicator adjusts the previous few bars as new info comes available.
This is very misleading. If you back test this indicator you'll end up with a massive profit (and you'll be amazed at how accurate it is at predicting price movement). Switch over to trading live and your massive profit will never materialize!
This indicator adjusts the previous few bars as new info comes available.
This is very misleading. If you back test this indicator you'll end up with a massive profit (and you'll be amazed at how accurate it is at predicting price movement). Switch over to trading live and your massive profit will never materialize!
That's called "the indicator repaints itself". I did warn about that in my blog. And that's quite obvious even without looking at the code. With each new candle the past values change.
I see you didn't approve/allow my follow up post where I recognise that what I was describing was what you called 'repainting'. I suggested that 'recalculating' would be a better word, as repainting sounds like an issue with updating the graphical representation of the indicator on the screen.
On http://www.earnforex.com/metatrader-indicators/Fisher, you explain the use of indicator as going long when the bars change to green or short when they change to red. However, you should include a warning along the lines of 'The user must ignore any historical output of this indicator. The indicator adjusts the value of prior bars based on subsequent price data.'
I disagree this behaviour is obvious. Most people assume that indicators are static and what they're seeing on the chart historically, accurately represents what was shown in real time. Unless you're specifically looking for repainting/recalculating, it would be easy to miss.
On http://www.earnforex.com/metatrader-indicators/Fisher, you explain the use of indicator as going long when the bars change to green or short when they change to red. However, you should include a warning along the lines of 'The user must ignore any historical output of this indicator. The indicator adjusts the value of prior bars based on subsequent price data.'
I disagree this behaviour is obvious. Most people assume that indicators are static and what they're seeing on the chart historically, accurately represents what was shown in real time. Unless you're specifically looking for repainting/recalculating, it would be easy to miss.
That's obvious because after applying this indicator on the chart you may see it change the previous bars when the new bar has formed. But OK, it looks like that's not so obvious after all. I'll add that warning to the download page.
BTW: This thread doesn't have any unmoderated posts, so I don't know why do you say that I didn't allow or didn't approve a post here.
What's the point of the repaint?
Thanks for adding the warning. It'll be useful for people who are evaluating a lot of indicators and don't have much time (like me!).
Regarding the 'disappearing post' - who knows? I wrote a follow up message which didn't appear on the forum. Does the forum software allow for 2 unmoderated posts? Anyway, no big deal .. chalk it up to 'lost on the internet'.
This may sound like harping but I'd like to get to the bottom of it. I don't see the value in the repainting/recalculating (apart from making it look like the holy grail when looking at the charts!). What's the point of the repaint?
Thanks for adding the warning. It'll be useful for people who are evaluating a lot of indicators and don't have much time (like me!).
Regarding the 'disappearing post' - who knows? I wrote a follow up message which didn't appear on the forum. Does the forum software allow for 2 unmoderated posts? Anyway, no big deal .. chalk it up to 'lost on the internet'.
This may sound like harping but I'd like to get to the bottom of it. I don't see the value in the repainting/recalculating (apart from making it look like the holy grail when looking at the charts!). What's the point of the repaint?
I don't know, I didn't code this indicator
.EDIT: But not all indicators are meant to give trading signals, some could just represent the chart data in a more convenient way, this is where repainting indicators come to use.
You can post the links here if they are direct download links. You can even attach the indicators to your post.
This might be the best i ever came across!
As it only repaints the 2. latest (including the one currently forming) you can base a tradingplan on going long or short everytime the 3rd stick is forming with the 2 privius beeing a new color.
Every dag at 00:00 GTM, you go to the daily chart EURUSD. You see that the 2 privius sticks changed from Red to Green (bullish). Now, place a Long and check back every day the market is open at 00:00 GTM and wait for 2 red sticks to form and close ur position + enter a short.
I backtested this on the EURUSD daily chart for 2010.
The results were quite nice:
Total trades taken: 17.
Total trades win: 13.
Total trades los: 4.
Biggest win: 1334,1 - Spread.
Biggest loss: - 60 pips - Spread. (about 62,5)
The year total pip earned: 6676,5 - spread.
As it only repaints the 2. latest (including the one currently forming) you can base a tradingplan on going long or short everytime the 3rd stick is forming with the 2 privius beeing a new color.
Every dag at 00:00 GTM, you go to the daily chart EURUSD. You see that the 2 privius sticks changed from Red to Green (bullish). Now, place a Long and check back every day the market is open at 00:00 GTM and wait for 2 red sticks to form and close ur position + enter a short.
I backtested this on the EURUSD daily chart for 2010.
The results were quite nice:
Total trades taken: 17.
Total trades win: 13.
Total trades los: 4.
Biggest win: 1334,1 - Spread.
Biggest loss: - 60 pips - Spread. (about 62,5)
The year total pip earned: 6676,5 - spread.
