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Yes, a trinary plot would do it. I'll check out that code. Thanks,
Jose.:)
S.
--- In equismetastock@xxxxxxxxxxxxxxx, "Jose Silva"
<josesilva22@xxxx> wrote:
>
> Sebastian, an easy solution here would be to code your binary so it
> plots -1 on short trade periods, +1 on Long, 0 when neither. In
> effect, your binary would now be a trinary plot.
>
> Take a look at the "Trade signals" MS code in the "System/signal
> indicators" section of http://www.metastocktools.com/#metastock
>
>
> jose '-)
> http://www.metastocktools.com
>
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, sebastiandanconia
<no_reply@xxx
> .> wrote:
> >
> > I've run into a problem with a binary signal and can't quite get
my
> > mind around how to solve it.
> >
> > I have a trend-following indicator where a binary signal "1"
> > indicates "Up" and "0" indicates "Down." I sell-short on minor
> > rallies when the trend-following indicator is at "0."
> >
> > When the binary indicator starts out (at the beginning of the
data
> > being tested) it's at "0", but there may or may not be an actual
> > downtrend according to my trend definition. I may get a false
> > signal to sell-short even though the trend isn't actually down,
just
> > because the indicator arbitrarily starts out at "0."
>
> >
> > I've read Roy's article about latches (and I've used his "Init"
> > trick) but haven't been able to puzzle out how to address this
> > problem.
> >
> > Is there a way out of this dilemma without waiting for a cycle
> > of "buy" and "sell" to initialise, which will exclude trades at
the
> > beginning? Any way of taking all the trades according to the
actual
> > conditions, so I don't have to kick out any first "false" trades
by
> > hand during testing? Or is it simply better to exclude those
first
> > trades so that I only get "true" signals?
> >
> > TIA for any guidance on this.
> >
> >
> > Luck to all,
> >
> > Sebastian
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