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Andy/
You never know who's listening! Your reply was all well and good, but
missed the point for anyone interested in using your indicator. It
would have been helpful if you had provided your own instructions to
implement it in MetaStock. Failing that, I invite you to criticise my
attempt, which I append. My choice of names was not the best but I
think the coding is accurate. I have made one revision to the Expert
Advisor instructions, and I'll take this opportunity to revise them
further.
In my para. 3 the Uptrend Condition should read:
C>FmlVar("Trading the Trend","HiLimit") AND
C>FmlVar("Trading the Trend","LoLimit")
and in my para. 4 the Downtrend Condition should read:
C<FmlVar("Trading the Trend","HiLimit") AND
C<FmlVar("Trading the Trend","LoLimit")
I stand by my statement that the indicator is too rudimentary to be
traded as a system, but I welcome a contrary opinion.
Harvey Pearce, Victoria, B.C., Canada
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Andrew Abraham cta wrote:
>
> Hi Anil,
>
> I wrote the article and I have to tell you ... he wasn't even close to he
> concept.. The most important thing is my indicator **Trend Alert which helps
> you find yourself in the trend.. I would like to point out.. it is not
> formulas and systems..It is you the trader ... The most important thing as
> traders is that we need to be committed.. flow with our trades.. have a
> carefree state of mind.. ..winning attitude.. stay in the oppurtunity flow..
> don't expect the market to do anything for us.. we need just to be there
> waiting for our low risk trades.. realize that each trade has a probable
> outcome.. and is independant from every other trade..This is what is really
> important.. there are a million different ways to make it in this game.. but
> it must match your personality...
>
> Good luck
> Andy Abraham cta
> Angus Jackson Futures
> -----Original Message-----
> From: Anil Chugani <achugani@xxxxxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
> Date: Wednesday, September 09, 1998 11:19 AM
> Subject: "Trade The Trend"
>
> >
> >Could someone please forward the "Trade The Trend" formula, by A.J. Maas
> >recently seen on this list, to me.
> >
> >Thanks in advance.
> >
> >Anil Chugani
> >
=========================================================================
An article in the September 1998 TAS&C, "Trading the Trend" by Andrew
Abraham, was about one form of stoploss exit: subtract some manipulation
of the true range from the highest high (or add it to the lowest low)
and exit when the close crosses that. Members of Chuck LeBeau's Traders
Club will recognise the "Chandelier Exit".
Here's my version of it (for MS v 6.5). I've written it this way to
make it easy to change the lookback periods and the multiplier.
Name: Trading the Trend
Pds:=21;
Mult:=3;
TruRan:=Mov(ATR(1),Pds,W)*Mult;
HiLimit:=HHV(H,Pds)-TruRan;
LoLimit:=LLV(L,Pds)+TruRan;
If(C>HiLimit,HiLimit,LoLimit)
1. After closing the Indicator Builder click on the Expert Advisor (the
guy in the bowler/derby hat).
2. Click on New, then the Name tab, type in Trading the Trend.
3. Click on the Highlights tab, select the first line so that it is
highlighted, click Edit, type in the name Uptrend, select Colour Blue,
select Condition, type in C>FmlVar("Trading the Trend","HiLimit"),click
OK,
4. Still on the Highlights tab, select the second line, click Edit,
type in the name Downtrend, select Color Red, select Condition, type in
C<=FmlVar("Trading the Trend","HiLimit"), click OK, click OK again.
5. If you have a chart open that you want to use this on, click Attach,
otherwise click Close. In the latter case, when you open a chart and
plot the trendline, click on the Expert Advisor, select Trading the
Trend, and click on Attach.
I've given the Expert steps in detail for any who may not be familiar
with its use. To experiment with variations in the lookback periods and
the multiplier you can do so in either the Indicator Builder, or
right-click the indicator on the chart, select Properties, then the
Formula tab, and make the changes (e.g. try a lookback period of 10, and
a multiplier of 2.5). As implemented above, the Expert should change
accordingly. This shows the trade-offs that have to be made between
near and distant stops. This is too rudimentary to be traded as a
system - the whipsaws would chop you to pieces - but the exits should
help to limit drawdowns.
A very similar stoploss is given in Chande & Kroll "The New Technical
Trader", pp.167 - 169, "Volatility-Based Trailing Stops". My preference
is to plot both the high and the low exit lines in contrasting colours,
dispensing with the switch between them, and dispensing with the
Expert. If anyone wants help with the code, just say so. And if I've
screwed something up again, say so.
Harvey Pearce, Victoria, B.C., Canada
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