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Hi Roy,
I couldn't get any further in trying to understand your latch-based
stop.
I'm fairly certain I understand how "Trade" is being calculated (see
my previous post below).
I know that the last line (Abs(Trade)....) returns zero when Trade is
N/A. Otherwise, it returns the close one bar after the buy price.
However, I don't see the objective of this line.
I would be grateful for the explanation.
Regards,
Alan
--- In equismetastock@xxxxxxxxxxxxxxx, "Roy Larsen" <rlarsen@xxxx>
wrote:
> Hi Alan
>
> Your answers are close but don't rate 100%. You may have mastered
what is happening but I'm not so
> sure you've mastered why it's coded to happen that way. In keeping
with your wishes I'm not going to
> explain further at this stage.
>
> Roy
>
> > I've been trying to understand your latch-based stop. I feel as
if
> > I'm disappearing up my own asymptote, but I'd prefer to work
things
> > out for myself if I can.
> >
> > If you could assert some binary responses (Y,N) to the following,
I
> > can use your answers to figure out what's happening.
> >
> > (This is your formula:
> >
> > {PREV Latch Exercise}
> > Set:=Cross(Mov(C,15,E), Mov(C,25,E));
> > Reset:=Cross(Mov(C,25,E), Mov(C,15,E));
> > Trade:=If(PREV<=0,If(Set,1,0),
> > If( Reset {independent exit} OR
> > C>=ValueWhen(1,PREV=0,C)*1.2 {20% profit exit} OR
> > C<=ValueWhen(1,PREV=0,C)*0.9 {10% loss exit} ,-1,1));
> > Abs(Trade)*ValueWhen(1,Ref(Trade=0,-1),C); {trade active/entry
price}
> > )
> >
> > Q: When is Trade = -1? {a sell}
> > A: Only when Trade(-1) = 1 AND (Reset = 1 OR C>20% profit OR C<10%
> > stop)
> > In Queen's English: a sell can only follow a buy, and only if the
> > EMA signal crossed down, or 20% profit, or 10% loss.
> >
> > Q: When is Trade = 1? {a buy}
> > A: If (a) Trade(-1) = 0 or -1 AND Set = 1
> > In English: When the previous trade was a sell, or neutral
(neutral
> > itself can only occur after a sell or another neutral) and EMA
> > crossed up.
> >
> > Q: What is ValueWhen doing?
> > A: We want the closing price of the bar for which the immediately
> > previous bar was the last occurrence of Trade=0 {did you get
that?}
> >
> >
> > Regards,
> > Alan
> >
> >
> > --- In equismetastock@xxxxxxxxxxxxxxx, "Roy Larsen" <rlarsen@xxxx>
> > wrote:
> > > Alan
> > >
> > > > At my delicate stage of development, it seems to me that "LOW"
> > > > and "Ref(LOW,-1)" would be recalculated daily, which is not
what I
> > > > want. For example, if the low were 20 on the day that the buy
> > > > conditions were satisfied, I would want it to stay at 20 (at
least
> > > > until I start it trailing). Am I correct in saying that it
would
> > be
> > > > recalculated daily?
> > >
> > > I think this has been mentioned in a subsequent post already but
> > you can use the ValueWhen()
> > > function to hold a value from one event to the next.
Unfortunately
> > this is not a total solution
> > > because an unwanted second or third event will change the
returned
> > value prematurely. This is where
> > > the use of a PREV function may be required. It allows the
storing
> > of a value from an entry signal
> > > until either an external exit signal OR an entry related
condition
> > occurs.
> > >
> > > How you code this will depend on exactly what it is you are
wanting
> > to do.
> > >
> > > I think that the Simulation dll functions may also be able to be
> > used for what you want to do. I
> > > haven't studied it yet so I'm not sure what it's potential uses
> > are. Check it out.
> > >
> > > Here's an example of how you can use a PREV based latch to
remember
> > an entry value. It doesn't have
> > > to be the entry price, it could just as easily be a relevant
ATR or
> > RSI value. Notice that the value
> > > is not stored in the latch itself ('Trade' variable) but
> > is "reconstituted" using ValueWhen(). It
> > > takes at least one additional PREV to store the value inside
> > the 'Trade' variable, and that's why I
> > > prefer to have the latch function only using 1, 0 and -1.
Minus 1
> > is not necessary either as far as
> > > that goes but it's useful though not critical.
> > >
> > > The 'Trade' variable can be reset either by using the
> > external 'Reset' or internally by referencing
> > > some current value to some value at the time of the first 'Set'
> > signal. There are a zillion
> > > variations you can do with this.
> > >
> > > {PREV Latch Exercise}
> > > Set:=Cross(Mov(C,15,E), Mov(C,25,E));
> > > Reset:=Cross(Mov(C,25,E), Mov(C,15,E));
> > > Trade:=If(PREV<=0,If(Set,1,0),
> > > If( Reset {independent exit} OR
> > > C>=ValueWhen(1,PREV=0,C)*1.2 {20% profit exit} OR
> > > C<=ValueWhen(1,PREV=0,C)*0.9 {10% loss exit} ,-1,1));
> > > Abs(Trade)*ValueWhen(1,Ref(Trade=0,-1),C); {trade active/entry
> > price}
> > >
> > >
> > >
> > >
> > > Roy
> >
> >
> >
> >
> >
> > Yahoo! Groups Links
> >
> >
> >
> >
> >
> >
> >
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