Trade management indicators

["Walter Lake" <wlake@xxxxxxxxx>]

Hi Fred

You wrote ... "I think the trick to building an indicator-based system is to
ask
key questions of the market, eg. what is the trend? what is the quality of
the
trend?, are we in a pullback?, etc. by selecting an indicator designed to
answer just one question.  The final trading decision then depends on the
traders' judgment, based on the answers the indicators reveal.  Possibly,
the
answers each indicator reveals can be programmed, i.e. in a binary wave and
then in a system."

I agree with this and feel that as a Metastock user I have been a top-down
user, i.e., looking at the market than at the tradable. This year I want to
investigate using Metastock from the bottom-up. Starting at the trade level
and the set-up level. Maybe Metastock is not suitable for this approach, but
then again maybe there are work-arounds.

For example, I can program a binary to show an "Inside Day" and overlay it
on my price chart without scale. The spikes then show me all the inside
days.

If I want to program Day 3 after my "Inside Day" trade then I can use
someting like
Ref(inside(),-3) to overlay another binary in a different colour on the
price chart.

I am exploring trade management indicators such as ROC between the "Inside
Day" signal and Day 3. If() statements may be the way to go.

Each "inside Day" and Day 3 pair becomes a "case", Even though Metastock
doesn't support "cases" maybe there are things I can do to look at averages
and other indicators of these "cases" that are more familiar to metastock
users. Maybe a combination of spreadsheet and Metastock will be the answer.

"Proven correct", as I understand it is not an absolute, but an individually
determined time and distance calculation, much like a stop is . With a stop,
I'm saying that I don't care to go any farther with this trade, get me out.

"Proven correct" is a "go" for me because it signals that yes, things are
going along as they should and yes my criteria to proceed has been met.
Therefore, I "go". It's just another level of analysis and criteria
development before a trade is taken. As an trade management tool, it is very
simple. As a psychological position, it can be a reversal of traditional
trade management.

Best wishes.

Walter