 MetaStock™ Zone Forum & FAQ Artykuły Linki Elliott Waves EasyLanguage™ Zone

 A B C D E F G H I J K L M N O P R S T U V W Y Z #

Confirming Price Trend System by Barbara Star

Barbara Star's article in this issue, "Confirming Price Trend," discusses using r-squared
and the slope of a linear regression line in conjunction with moving averages and the stochastic.
All these indicators are built into MetaStock and require no custom formula to use.
Here is a system based on the suggestions in her article.

Long positions are entered when:

• A 10-period moving average is above a 30-period moving average
• The stochastic oscillator has risen above 20
• R-squared is above 0.2
• -A 20-period linear regression line slope is above zero.

Short positions are entered when:

• A 10-period moving average is below a 30-period moving average
• The stochastic oscillator has fallen below 80
• R-squared is above 0.2
• A 20-period linear regression line slope is below zero.

Positions are closed when:

• R-squared is equal to 0.2 or less
• A 20-period linear regression lines slopes against the position
• Either the moving averages or the stochastic oscillator give an opposing signal.

The formulas and the steps to recreate this system in MetaStock are shown here:

1. Select Tools > the Enhanced System Tester
2. Click "New"
3. Enter a name
4. Select theBuy Order tab and enter the following formula:

stsig:=if(cross(stoch(14,3),20),1,if(cross(80,stoch(14,3)),-1,prev));
mov(c,10,S)>mov(c,30,s) AND rsquared(c,20)>.2 AND
LinRegSlope(c,20)>0 AND stsig=1

5. Select theSell Order tab and enter the following formula:

stsig:=if(cross(stoch(14,3),20),1,if(cross(80,stoch(14,3)),-1,prev));
rsquared(c,20)<=.2 AND LinRegSlope(c,20)<=0 AND
(stsig=-1 OR mov(c,10,S)<mov(c,30,s))

6. Select theSell Short Order tab and enter the following formula:

stsig:=if(cross(stoch(14,3),20),1,if(cross(80,stoch(14,3)),-1,prev));
mov(c,10,S)<mov(c,30,s) AND rsquared(c,20)>.2 AND
LinRegSlope(c,20)<0 AND stsig=-1

7. Select theBuy to Cover Order tab and enter the following formula:

stsig:=if(cross(stoch(14,3),20),1,if(cross(80,stoch(14,3)),-1,prev));
rsquared(c,20)<=.2 AND LinRegSlope(c,20)>=0 AND
(stsig=1 OR mov(c,10,S)>mov(c,30,s))

8. Click OK to close the system editor. --William Golson
MetaStock Support Representative
Equis International (A Reuters Company)
801 265-9998, www.metastock.com

Source / From: TOP