I first thought because it looks into the future, it was of no use.
But upon reflection, it just *might* work. All we are looking for is the previous pivot low. That won’t change.
20% up from that is the flipper entry.
The ZigZag indicator has/needs only one parameter, a percentage, please correct me if I’m wrong.
That would be just about perfect. Anything else like LLV(L, x) needs another parameter, adding an extra degree of freedom.
I haven’t done anything about it, mainly because I believe the flipper has an entry as well as an exit without any predictive value. There is no money in it (in my opinion).
How then did Nick get such terrific returns? I’m not sure, but I guess the survivorship bias comes into it, notwithstanding the inclusion of delisted stocks. Also, possibly because there would be so many smallcaps and microcaps, many of them would have performed well during the bull market. But there was also the GFC and other nasty periods in those 14 years.
If you end up coding the 20% flipper, you would only need to backtest it starting in 2011. It would be interesting to see what has happened, remembering that “the 20% Flipper is yet to have a losing year.”
If you need the AllOrds constituents from 2011 let me know.
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