Re: Bad news gap system

[Bob Fulks <bfulks@xxxxxxxxxxx>]

At 7:41 PM -0500 12/25/97, Perthuis wrote:
>I am looking for a system or show me that finds the following:  If open <
>close of one bar ago by variable % then buy open and sell close.
>
>I see that stocks that gap down on open on bad news usually close up
>substantially.  Does anyone have a system or show-me that uses this idea?  I
>have tried to write this but am new to easy language.  Before I get too
>frustrated I thought I would try here.
>
>Thanks



This is a little tricky as EasyLanguage will not allow you to use an
ExitLong on Close in the same system as an entry based upon the open of
next bar. But you can fool it by putting the exit in a separate system.

The attached code works and seems to be profitable much of the time. You
might like to include stops...

Bob Fulks

{*****************************************
System:     Gap Down

Coded by:   Bob Fulks
*****************************************}

Input: GapSzPct(4);

if Open of next bar < Close * (1 - GapSzPct / 100) then
     Buy next bar at market;

IncludeSystem:"ExitLong on Close";




{*****************************************
System:     ExitLong on Close

Coded by:   Bob Fulks
*****************************************}

ExitLong on Close;


--
Bob Fulks
bfulks@xxxxxxxxxxx