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My "goal" was to convert this to an exploration to create a data base
I can use in Trade Sim to run a backtest on it.
Tradesim requires that in the exploration, I break this out into an
EntryTrigger := <trigger>;
and an
ExitTrigger:= <trigger> ;
Not being a programmer of any type, I was unable to see exactly how to
break apart this entry and exit trigger. Which is why I was asking
the questions.
--- In equismetastock@xxxxxxxxxxxxxxx, "Roy Larsen" <rlarsen@xxxx> wrote:
> metastockuser
>
> The code up to the first PREV is solely for picking the FIRST 4% change.
> After that the 'X' variable toggles between +1 and -1 with each 4%
reversing
> change. If you check the MS User Manual you'll see that Lowest() and
> Highest() check every bar under test so far. They can only be used
for the
> first change in this piece of code. The same thing could be achieved by
> using more PREV's. My only contribution to the code was to cut it
down from
> 9 PREV's to just 5 as you see it now.
>
> Roy
>
>
> ----- Original Message -----
> From: "metastockuser" <metastockuser@xxxx>
> To: <equismetastock@xxxxxxxxxxxxxxx>
> Sent: Sunday, November 16, 2003 3:55 AM
> Subject: [EquisMetaStock Group] Re: Here's an SPY trading System
(question)
>
>
> > I'm not a programer and I'm trying to figure out how this formula
works.
> >
> > when you use the command >lowest(c)< I take that to mean the lowest
> > close. But how many closes is it looking at? It appears to me that a
> > value of 1 or -1 is being applied depending on if the close is 4%
> > above the lowest close or 4% below the highest close, but I'm not sure
> > how far back the system is looking.
> >
> > If somone wouldn't mind a very brief explananation of what that
> > program is doing along with the Close issue I'd appreciate it.
> >
> >
> > --- In equismetastock@xxxxxxxxxxxxxxx, manohohman <no_reply@xxxx>
wrote:
> > > Roy (code refinement) and I (theory and application) took
Zweig's old
> > > 4% indicator based on the Valueline Geometric Index, updated it,
> > > added a twist to it and refined it for trading the SPY Daily.
> > >
> > > Here's how it works.
> > >
> > > 1. Instead of the Valueline Geometric Index, this system uses the
> > > Valueline Arithmetic Index. (This is an important difference!) This
> > > index is $VLE on Esignal. (I don't know what it is on whatever free
> > > service you've found so don't ask me.)
> > >
> > > 2. Once you've opened that Index on a daily chart, color the price
> > > line (not bars) red, create the following expert, and apply it.
> > >
> > > Highlight Code Green
> > >
> > > X:=If(Cum(Ref(C>Lowest(C)*1.04 OR C<Highest(C)*.96,-1))=0,
> > > If(C>Lowest(C)*1.04,1,
> > > If(C<Highest(C)*.96,-1,0)),
> > > If(PREV=1,
> > > If(C<HighestSince(1,PREV<1,C)*.96,-1,PREV),
> > > If(C>LowestSince(1,PREV>-1,C)*1.04,1,PREV)));
> > > I:=Cum(1)<=2;
> > > State:=BarsSince(X=1 OR I)<BarsSince(X=-1 OR I)+(Cum(X=1)=1);
> > > State;
> > >
> > > 3. Since March your price line should be green, except for two red
> > > down turns.
> > >
> > > 4. To this chart apply a simple 20 ma.
> > >
> > > 5. Open another chart of the SPY daily. Create a new window on the
> > > Valueline chart, copy the SPY daily and paste it into the new window
> > > on the Valueline Chart. Close the SPY chart.
> > >
> > > 6. Here are the trading rules. You must follow them exactly. A buy
> > > signal is created when either the price line turns green or crosses
> > > the 20 dma. You take which ever signal comes first. It doesn't
matter.
> > >
> > > A sell signal comes when the price line turns red or crosses below
> > > the 20 dma. It doesn't matter which comes first. You take the first
> > > signal from either indicator. You sell the long and take the short.
> > > If you're trading in a retirement account, you can't short but you
> > > can buy Rydex, Profunds or Potomac on the short side.
> > >
> > > 7. To avoid whipsaws, you can use a pyramiding technique of buying
> > > one third of your buyin at a time. It will limit losses on the
> > > whipsaws but reduces your overall return somewhat. It's all in your
> > > risk profile. You decide.
> > >
> > > 7. Since you can't buy the Valueline Arithmetic Index you buy
the SPY
> > > on the Valueline entry and exit signals.
> > >
> > > 8. Don't apply this to any other security except the SPY.
> > >
> > > 9. How good does it work?
> > >
> > > Over the last 10 years, it's averaged 22% a year, with one small
> > > losing year and 40% plus gains the last 3 years. Just take whichever
> > > signal occurs first, either the green indicator signal or the 20 dma
> > > crossover.
> > >
> > > This is as simple as TA gets. Use it to your advantage. I got
this by
> > > paying attention to some of my systems development books. It's about
> > > twice as profitable as Zweig's original method, and is about 3 times
> > > more profitable than buy and hold.
> > >
> > > Now isn't this why you bought MS in the first place. I know, don't
> > > tell me, all of you arrogant wizard traders won't waste your time on
> > > a measely 22% a year unless I can hang a 1 in front of the 22. No,
> > > you killer TA masters are going to make buckets of money! Really,
> > > well here's an article to put that theory to rest.
> > >
> > > www.investorhome.com/psych.htm
> > >
> > > Read this article on behavioral finance and see what arrogance gets
> > > you......
> > >
> > > This system is free, my momma could make money with it, and now you
> > > don't have any excuses for losing dough.
> > >
> > > JO
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > equismetastock-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
> >
> >
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