Trade management indicators

["Walter Lake" <wlake@xxxxxxxxx>]

Hi Richard

Here's a trade mangement graphic indicator that I'm working on.

This is Ruggiero's Trade Station formula for the calculation of the average
return in points of a
simple downside breakout after a 5 Day hold. Of course any signal can be
substituted for the breakout signal.

N = period used in breakout
Lk = holding period used in breakout (i.e., 5 days hold after breakout, 10
days after breakout)
Cond = the true / fale expression used as a filter


This formula calculates the average return over different holding periods
after a DOWNSIDE
beakout. Records return in points for a fixed period (5, 10 days etc.) after
each N -
bar breakout. Can also be used as a Day 4 and Day 6 proven correct filter,
i.e., is the
trade showing signs of going in the right direction, rather than using a 4
or 6 day delay filter before entering the trade

{the following imputs and vars (variations) are informational only}
Inputs: N(10), Lk(5), Cond(true)
Vars: Cases(0), Sum(0)


{if the low is the lowest low in the past N days Lk days ago, then
increment case counter and set up to sum returns}

If(Low = Lowest(low,N))[Lk] and Cond[Lk +1] = True then begin Cases =
Cases +1;

{Add up the difference between today's close and the simulated entry at the
previous day's low or next day's open which ever is higher}

Sum = Sum + (Minlist(Low[Lk +1], Open[Lk])-Close);

{Divide the sum by the number of cases and calculate the average}

If Cases > 0 then Plot (Sum/Cases, "Down Return");

"Cond" input allows formula to filter breakouts given different setup
patterns.

I'm still in doubt about what form these indicators will take on the screen.


Best wishes

Walter Lake