Re: System Tester Stops -- Exit at the Stop Price

[wander@xxxxxxxx]

Glen:

Based on my exceedingly non-scientific observations<g>,
as best I can tell from checking a few more random trades, when "Exit at Stop
Price" is NOT checked and Exit Price/Trade Delay is set to 1, a trade will be
exited on the bar immediately following the bar on which the Max Loss had been
exceeded, but when "Exit at Stop Price" IS checked, a trade will be exited ON
the bar on which the Max Loss is exceeded.  In either case, conditionally based
exits such as trailing stops that i.e. are based on moving averages are
unaffected by the activation/inactivation of  "Exit at Stop Price" and will
always exit based on the user selected value for Trade Delay, which in this
example is 1.  In all cases trade equity is calculated using the user selected
Trade Price/Entry Price and Trade Price/Exit Price, which is of course is
limited to O,H,L, or C.

I believe what I just said (or tried to say) is in agreement with the first of
two paragraphs (below) from the manual.  I'll admit that I had to read that
first paragraph more than once to make sense of it though.  Once I got a grasp
on what "actual stop price", "the specified exit price", and "exact stop price
level" meant in Equis-ese, that paragraph actually made a bit of sense.

Gaps- If long and the market gaps open below your Max Stop, the exit seems to
occur on that bar's open (gap bar), even if Close has been selected for the
Trade Price/Exit Price.  I arrived at this based on a statistically invalid
sampling of..............1 (one) occurrence.<G>

I truly welcome any input that will correct anything I've said or shed light on
any of this and I encourage further testing!  (Just not by me.) <g>

Regards,
Ken
-------------

Glen Wallace wrote:

> Ken:
>
> Here is an extract from the MetaStock manual on stops, trade delays and
> gaps:
>
>     "When a stop is triggered, the position is closed regardless of the
>     current status of your trading rules.  The price at which the position
>     is closed is the actual stop price or the specified exit price.  If you
>     check the "Exit at Stop Price" box in the Stops dialog, the position
>     is closed at that exact stop price level, even if a trade delay has
>     been specified.  Trade delays are ignored if the Exit at Stop Price
>     box is checked."
>
>     "If the price gaps below a stop level on a long position, MetaStock
>     Pro exits at the open price of the next bar.  If no open price is
>     available, the high price of the next bar is used.  Likewise, if the
>     price gaps above a stop level on a short position, MetaStock Pro
>     exits at the open price of the next bar.  If no open price is available,
>     the low price of the next bar is used."
>
> It would be worth testing this in any case.
>
> Regards.
>
> Glen
>
> ----- Original Message -----
> From: <wander@xxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: August 13, 1999 15:40
> Subject: Re: System Tester Stops -- Exit at the Stop Price
>
> > Glen.
> >
> > Coincidentally the day before this thread started I emailed Equis about
> > this. Yesterday I sent a follow up email to their reply  and will let you
> > know if I learn anything enlightning.
> >
> > Regards,
> > Ken