This force may be in your hands ... This manual is a set of useful step-by-step instructions on how to use the most powerful features MetaStock; experts, research and testing systems.
Content
Introduction
Welcome
For whom is this manual?
How to Use this Guide
Getting Help
Chapter One - What is technical analysis?
Introduction
Fundamentals of technical analysis
Chapter Two - Introduction to MetaStock and MetaStock Performance Systems Systems
Introduction
MetaStock
High system MetaStock Performance Systems
What system should I use?
Comparison of tests of
Chapter Three - Using tools MetaStock Power Tools
Introduction
Opening Graphics
Custom Indicators
Advanced Systems Tester
Researcher
Expert Advisor
Basic Principles of Trade
Disclaimer
Chapter Four - Description of MetaStock Performance Systems
Introduction
Systems
Adaptive Moving Average
Bull / bear force 1
Bull / bear force 2
Bull / bear force 3
CCI (commodity channel index)
Predskazuyuschy Oscillator Chande
Turn CMO
Breakthrough of the consolidation
Model Cooper 1234
Cycle progression
Dynamic Momentum Index 1
Exponential Moving Average
Fractal trading systems 1 and 2
Sales of long positions, then a short sale - 5 days
MACD Charts 1 and 2
Perekuplennost / pereprodannost Mayzelsa
Sinus wave MESA
The system of trade pattern 1
Percentage crossing 3%
Projected oscillator 1
StochRSI
Index fluctuations
Vertical horizontal filter breakthrough volatility (Chaikin)
Introduction
Welcome
Your emotions hinder trade? Would you like to enhance their trading style of discipline? Would you like to automate their investment activities, using an embedded set of proven strategies to trade? And what you say about the guide, which explains all this in easy to understand format? It is intended for the MetaStock ®, MetaStock Performance Systems ™ and the guide.
We will show you how to quickly and easily using the most powerful functionality of MetaStock - Tools Power Tools. We also will introduce you to 26 out of 80 high-performance systems, MetaStock Performance Systems - collection of the best trading systems ever developed for MetaStock.
The core of this guide is a step-by-step instruction on how to use high-performance system MetaStock to find the best options for investment. This guide shows you step by step how to use each tool MetaStock Power Tools, to help in the selection of systems and transactions. You understand and begin to use trading systems almost lightning speed.
We take your time, only the most necessary for the start of trading instructions. This guide is not a complete guide to MetaStock (it can be retrieved using the background menu MetaStock Help). This is not a guide to the basics of MetaStock (see QuickStart training examples in the Help menu, MetaStock Help). This is not a course on how to trade. Yes and no thorough overview of technical analysis. This guide is a quick and easy way to feel the force of MetaStock. Where necessary, for additional information, you will be sent to other reference material.
For whom is this manual?
If you are familiar with the implementation of basic tasks in the MetaStock, this guide is for you. Under the basic tasks means opening schedules, creating files of securities, downloading data, the construction of indicators and driving tests and research systems. If you are not familiar with any of these problems, we strongly recommend that you read the Book «The first steps in MetaStock» before you start reading this material.
How to Use this Guide
Chapter One of this guide acquaints you with the technical analysis and describes the principal methods used in MetaStock to help you make better investment decisions. Later in this tutorial we will familiarize you with improved techniques and general understanding of technical analysis is very help.
In the second chapter explains what is unique and efficient system MetaStock MetaStock Performance Systems, and what they can do to improve your trading. This chapter also describes two approaches to the use of high-performance systems, MetaStock so that you can choose the most appropriate for your system.
Chapter three is a step-by-step tutorial for each of the tools MetaStock Power Tools, together with high system MetaStock Performance Systems. Here you will learn how to manage the true power of MetaStock.
Chapter four contains a description of each of the high-performance systems, MetaStock, and you can choose the one that best corresponds to the style of your trade.
At the left margin of this guide contains references to the file reference support MetaStock. The key word for search is allocated with a bold (as in the example on the left). To see your keyword, select the Help menu in MetaStock Help, and click on the Index. Then type in a keyword in the input data at the top of the dialogue.
Rather paragraph: Help MetaStock - keyword
Rather paragraph: Definitions of new terms are in the fields.
When the new terminology is the first time, its definition is printed in the margin.
Getting Help
If you have problems or questions, first of all refer to the system reference assistance MetaStock. It contains all that is in the printed version of the manual. In support, you'll find answers to most questions.
Each dialog has a button aid, which displays help for this dialog. Or you can click on the icon context-sensitive help, and then click on any point in the dialogues MetaStock, to get help on that item.
Rather paragraph: (a picture): The icon context-sensitive help
If you have searched through the system, but could not find a solution to your problem or answer to your question, please contact to obtain assistance from the seller, from whom you purchased MetaStock. If you bought directly from MetaStock Equis, you can to get help for MetaStock, contact technical support Equis. For information on how to contact technical support Equis Technical Support, written in the Technical Support section of Help MetaStock.
Rather paragraph: Help MetaStock - Technical Support
Chapter One - What is technical analysis?
Introduction
For some people, the technical analysis is something of a mystical art, divination related to the thick coffee. For others it is a valuable tool to increase the investment success while reducing risk.
Simply put, technical analysis is the study of past price and volume of trading in securities for the purpose of predicting the future. Technical analysis deals only with elements of the price (open, maximum, minimum, and closing) and the volume associated with the security, and ignores other factors such as profit, revenue growth, etc. Technical analysis can be applied to almost any investment instruments, including stocks, futures, options and mutual funds.
On the paragraph: The term security refers to shares, bonds, mutual funds, exchange goods, currencies, futures, indices, options, etc.
This chapter describes what is technical analysis, and why you should use it, and also introduces you to some basic concepts of technical analysis.
Why use technical analysis?
When using technical analysis can increase the profit from your investment while reducing your risk. Would you buy an old car, not knowing anything about his past history? Similarly, you should not buy a stock, do not know how to behave its prices in the past.
Technical analysis protects you from the biggest enemy of your investment success - your own. The use of a mechanical trading system removes emotions from trading. It makes you more disciplined trader. It eliminates the possibility that you zapanikuete in the most inopportune moment.
Fundamentals of technical analysis
This is a very simplified introduction to the basics of technical analysis. For more information on technical analysis can be found in the excellent book creator Steve MetaStock Achelisa (Steve Achelis) «Technical Analysis from A to Z» (Technical Analysis from A to Z.
Graphs
The underlying concept of technical analysis is the schedule. This is where technical analysis of the case. The chart shows in graphic form, the history of the trading of the securities. The most common schedule of technical analysis is a «bar graph». Bar shows the opening price, the maximum, minimum, and closing during the period. Consider, for example, the following illustration. The volume is usually displayed below the price bars.
Rather paragraph: Open - the first price auction over the period.
Maximum - the highest price bid that took place during the period.
Minimum - the lowest bid price that occurred during the period.
The closure - the last price of trades during the period.
Volume - the number of shares purchased / sold during the period.
Period - a period of one bar (eg, minute, hour, day, week, month).
Axis X - the scale of dates along the schedule.
Axis Y - the scale of prices along the side graphics.
The base graphics (also called the axis X) indicates the date. On the right side of the graph (also called the axis of Y) are shown in the price.
Bar graph is the most commonly accepted type of schedule, but in MetaStock are also other forms of graphs. For example, you can build a closing price of the line. It is also a good schedule, if you want to just throw a quick glance at the general behavior of prices over a long period.
Support and resistance
The prices of securities represent the balance between buyers and sellers. When the price falls to a point where buyers are much more than sellers, prices stop falling, and you get the level of support. When prices are rising to the point where the market is a lot of sellers, prices stop rising, and you get the level of resistance.
The following illustration shows MedImmune and the level of support at U.S. $ 44
When the action moves between the support and resistance, their behavior is called the «cyclic». Indicators developed for such behavior can also be referred to as cyclical indicators, or indicators perekuplennosti / pereprodannosti or turn indicators. Cyclical indicators work best when the shares are trading corridor. The most well-known cyclical indicator is probably the stochastic oscillator (Stochastic Oscillator). More information on indicators is written on page 6.
On the paragraph: Perekuplennaya (overbought) security risen to excessive levels, and it is correct. Resold to (oversold) security is its antithesis.
Trade Corridor, or the range of (trading range) is a lateral movement of prices on the graph and is often a period of respite before prices resume their previous trend.
In trading on the levels of support and resistance levels are encouraged to wait for confirmation, rather than trying to anticipate the prices. In other words, wait until prices fall to support and not otskochat it (confirmation) before opening a long transaction, and vice versa for short transactions.
Trends
The opposite action, caught between support and resistance is the trend in action. Ascending trend is defined as more and more high minimums. Top-down trend is defined as more and more low records. The old adage «Trend - your friend» - is absolutely true. The following illustration shows a remarkable upward trend in Washington Mutual, once the price overflows the level of resistance.
Rather paragraph: Ascending trend (up-trend) is an increasingly high minimum bids.
Top-down trend (down-trend) is an increasing and lower maximum prices.
The indicators that follow the trend, you can also call «weaker» indicators, because their signals are not kept pace with price changes. The best way they work when securities move in a long-term trends. The most common indicator, following the trend is moving average (moving average).
Indicators
The indicator is simply a mathematical calculation applied to some or all the price fields and / or volume. LEDs can be built on schedule, providing thus a graphical representation of these calculations. Many of the high-performance systems, MetaStock Performance Systems are used in their calculations of the indicators (system, not using indicators, using the price figures).
Rather paragraph: Pricing figure (price pattern) is recognized by the price formation, which is expected to continue or change the trend.
Moving Average
One of the most common indicator is the moving average. Moving Average shows the average price for which the securities traded during the period of time. For example, a 5-day moving average is calculated by summing the closing prices over the past five days and dividing this amount by five, the average number is obtained. This moving average is called «easy» moving average, because it gives equal weight to each period. MetaStock includes six other versions of the rolling average, distributing the weight in different ways.
Rather paragraph: Moving average (moving average) is the average price at which securities traded during the period of time.
Moving Average represents the average price that investors were willing to pay per share for a specified period of time. This gives you a view of the crowd. The following illustration shows Microsoft and 25-day moving average. Please note that the purchase or sale price of the crossing points in the moving average is belated, but profitable entry points.
Rather paragraph: Help MetaStock - Moving Average
Moving averages are lagging indicators. Made of the signals appear after the price has changed its direction. On the other hand, the moving average is always ultimately take you to the right side of trend. Moving averages are best suited for securities that have strong trends.
Stochastic oscillator
Another popular indicator is the Stochastic oscillator. «Stochastics», as they are sometimes called, shows where the traded price on the recent range between maximum and minimum. For example, desyatiperiodichny Stochastics is the highest and the lowest price in the last ten days and see where in this range is the current price. The value 100 would indicate that the Stochastics are at the top (or 100%) 10-day range between the maximum and minimum, a value of 0 indicates that it is based on the range. The following illustration shows the Intel and the stochastic oscillator.
Rather paragraph: Stochastic oscillator (Stochastic Oscillator) calculates the price of relatively recent range between maximum and minimum.
Help MetaStock - Stochastic Oscillator
Stochastic Oscillator is an indicator perekuplennosti / pereprodannosti. In other words, he tries to anticipate Facing prices. Usually it is interpreted is open long position when the Stochastics turns up out of the territory pereprodannosti (ie, crosses the line 20 towards the top) and the opening short position, when the Stochastics falls below perekuplennosti territory (ie, falls below 80). Stochastic oscillator works best with securities, which are cyclical, or bestrendovoe, behavior. Stochastics are based on the principles and many other indicators.
Other indicators
MetaStock includes more than 120 other technical indicators of accumulation / Distribution (Accumulation / Distribution) and zigzag (Zig Zag). MetaStock also includes more than 100 mathematical, statistical, temporal, and other functions that can be embedded in your own technical indicators. You can experiment with any of their number, if you have at this time. Most investors are a couple of indicators that work for them and their hold. We hope that the system MetaStock Performance Systems will be able to lead you to a couple of indicators that will work for you.
Chapter Two - Introduction to MetaStock and MetaStock Performance Systems Systems
Introduction
Technical analysis is a powerful tool, but to get maximum benefit from it, let most of the work to the computer. MetaStock and high-performance system MetaStock Performance Systems do for you all the dirty work, allowing you to spend your time more productively.
This section gives a brief overview of each tool and MetaStock Power Tool. This section also brings you the highly productive systems, MetaStock Performance Systems, and help you choose a system that is best for you.
MetaStock
MetaStock provides all the tools necessary for developing, testing and deployment of advanced trading systems based on technical analysis.
Tools MetaStock Power Tools include the researcher Explorer ™, designed for the detection of securities related to certain conditions, the Advanced Systems Tester Enhanced System Tester ™, designed to test trading systems to see how profitable would be your ideas in the past, the builder of the indicators Indicator Builder designed to create your own indicators and expert advisers Expert Advisor ™ to introduce a custom comment, highlight bars, symbols and signals.
Researcher
Explorer is a powerful multi-purpose tool of analysis, which can perform deep «research» (also known as «scanning») of thousands of securities at the same time. He can compare, rank, sort and filter securities; to bring together many of the values of indicators for many securities; show securities to current signals buying and selling, and searching for any technical criteria set by the trader. Results can be saved for the future in the form of lists that provide convenient access.
Rather paragraph: Help MetaStock - What is research?
Advanced Systems Tester
Advanced Systems Tester allows users to create and experience the historical data of trade. The user sets the conditions for entry and exit, the amount of commissions and other important details. Then, an improved test system is the criteria on the real securities, to see how much money could be made or lost, using this system in a given period of time. Advanced Systems Tester can also optimize each system so as to find the parameters that work best for a particular security, and compare a lot of systems to show which of them is the most profitable. These tools allow traders to optimize their chances of making a profit on the market - without risking a single cent of real money.
Rather paragraph: Help MetaStock - What is the testing of the system?
Construction indicators
In MetaStock is a powerful indicator builder, which allows users to easily create their own indicators, using more than 200 built-in MetaStock mathematical, statistical and technical functions. Indicators MetaStock also supports variables, multiple charting and user input.
Rather paragraph: Help MetaStock - What is the construction of indicators?
Expert Advisor
Expert Advisor MetaStock works as a basic tool for learning, and as a powerful means to automate trading systems, regardless of their degree of perfection. The experts include buying and selling signals, warnings and a written comment. Users can also create their own experts to the automation system of signals, warnings, and so on.
Rather paragraph: Help MetaStock - What is an Expert Advisor?
High system MetaStock Performance Systems
High system MetaStock Performance Systems are a set of 80 most productive system ever developed for MetaStock. Twenty-six of these systems come with MetaStock free, while the remaining 54 are available through the purchase of additional product MetaStock Performance Systems Plus.
Each system has MetaStock related test systems, the study of signal, the study of productivity and an expert adviser. Some of the research productivity associated with 26 free systems are offered only for the money. The description of each of the 26 free systems is in the fourth chapter of this guide, including information on whether a study of productivity in the MetaStock or package must be purchased in addition to the MetaStock Performance Systems Plus.
As selected by the system MetaStock Performance Systems
High system MetaStock Performance Systems, developed by Trading Systems Analysis Group, were selected by testing for the daytime data of many options for hundreds of different systems, which generally amounted to approximately 10 000 different combinations. Tests were conducted on the day these shares without any delay of transactions, with input and output at the closing. Commissions during the test is not calculated. Stop is not used, because the systems have their own signs out, rather quickly closing the deal. Cheap and low traded stocks in the test were not included. The system recognized the fit, if its trade efficiency (detailed on page 35) provided a positive for more than 50% of the analyzed stocks.
Rather paragraph: Stop is an order to sell a long position or cover a short position at a predetermined level, usually in order to limit losses.
What system should I use?
There are two approaches to tools MetaStock Performance Systems. You can choose the action you want to sell, then find a system that works best with these shares.
Or, you can choose the system that you would like to use, and then find stocks that are best to trade with them. You can use the advanced tester of systems to compare the performance of the system at all events in your chosen database, or even online. Shares may be measured by profits, the percentage increase, and other criteria, then you can choose what to sell.
Then explains both approaches. You decide which one suits you best.
Comparison of tests of
Select an action or actions that you want to sell, by any criteria that you find fitting. You can choose to share, which is a lot you know. If you are going to open only long positions, you should probably choose the action that you think has good long-term prospects.
We will compare the performance of different systems for different activities, using advanced systems tester. For more information on the use of advanced test systems, see the step-by-step guidance on the use of advanced test systems on page 25.
The testing of a system at several events
Suppose that you have chosen the system you want to use, and simply want to find an action whose nature corresponds to this system. Perhaps after reading the descriptions in the fourth chapter, you have decided that the system is best suitable to your style of trading, the trading system by pattern 1 (Pattern Trading System 1). It is based on the bull's premise and traded every week or two, so you decide to try and see what will turn out. In the next example we'll show you how to choose an action for trade using the trading system on the pattern 1.
1. Click the Advanced Systems Tester.
2. Click a new conversation model New Simulation. A selection screen of Select Systems.
3. Scroll down and select PS Pattern Trading System 1.
4. Click Next. A screen of choice Security Select Securities.
5. Click the Add Securities. A dialog appears adding securities Add Securities.
6. Double-click a folder under the name «Stocks-Common», then double-click on the folder called «S & P 100.»
7. Click Tools, then click Select All.
8. Ensure that the frequency of a daily regime Daily (in the lower left corner) and click Open.
9. Returning to the screen Select Securities, click Dates. A dialogue dates Modeling Simulation Dates.
10. Select the «Use price data from», and enter in the field of «from» 6/30/2000 in the field «to» 7/1/2002.
11. Click OK.
12. Click Next. The Setup screen appears Testing Systems System Testing Options.
Set test at the same as those that are shown above.
13. Click More, to open the setup dialog testing systems and select a bookmark the execution of transactions Trade Execution. Check realistic market prices Realistic Market Prices.
14. Click Next. A screen simulation of the early bidding Begin Trading Simulation.
15. Type «PTS1» in the upper field (where is written «The System Tester will now perform the simulation» - «now begin modeling tool systems»).
16. Click Start. In the lower right corner of the screen, a window state.
17. When the simulation is completed, click on the button view results View Results.
Opens a window viewing the results of the test Test View. Click on the column heading net profit «Net Profit». It is located the results so that the most effective action would be top of the list.
The two best are from us (on net profit) General Dymanics and Schlumburger. But net profit - only part of the picture. Let us examine more closely how well these securities trading system for pattern 1.
18. Double-click on the General Dynamics in the list of results (bottom half of the screen). A Final Report Summary Report.
19. Look at the section of productivity Performance (second from top left) and note the position of the profit from the purchase and retention of Buy & Hold Profit. She was only 5 to $ 236.25 and the system of trade pattern yielded a profit of U.S. $ 5,636.25, or $ 400 more. This is a good sign.
20. Now click on the tab Capital Equity, to view a report on the movement of capital Equity Report.
Liniya assets increased steadily, without any extraordinary leaps. This suggests that the system is relatively stable and reliable.
21. Now click Back and repeat steps 18 - 20 for Schlumberger.
You will find that the testing Schlumberger net income exceeds the income from buying and holding, but its line assets less stable than those of General Dynamics. Therefore, two securities that have the highest net profit from trading system to pattern 1, General Dynamics, probably is the best candidate. If you decide to use this valuable paper to the test, you must attach a schedule to the General Dynamics expert trading system for the template and every day to check, does not issue whether it signals the purchase and sale.
Testing of several systems on one share
1. Run the advanced test systems so that we can perform testing on historical data (for more information on advanced tool systems, see page 10).
2. We want to try on our stock, all 26 high-performance systems, MetaStock, to see which one is better suited. To select all of the system, click on the list of systems on the first system of PS, followed by pressing and holding shift, click on the last in the list of the system PS.
3. Click the new model New Simulation, to activate the master simulation bidding.
4. Click the wizard, click Next.
5. Click the Add Securities. A dialog appears adding securities Add Securities.
6. Make sure the button Online Vendor is selected and double-click on the folder Stocks-Common, to open it (if you have not already done so).
7. Click Options and select View by Name.
8. Type Amgen in the ticker symbol Symbol.
9. Set the frequency to daily treatment daily (in the lower left corner) and click Open. You return to the master.
10. Click Dates.
11. Select price range use «Use price data from __ to __», and enter as the first date of 6/27/2001, and as the last date of 6/28/2002.
12. Click OK.
13. Click Next. In the wizard dialog settings, testing systems, System Testing Options.
14. Select testing only points Points Only Test. Make sure that the other option settings dialog testing systems comply with the following illustration.
15. Click More, to open the setup dialog testing systems, and click on the tab transaction Trade Execution.
16. Turn off the option of realistic market prices Realistic Market Prices.
17. Set the price of buying Buy Price and Sell Price of sale price at closing, Close.
18. Click OK.
19. Click Next. A dialogue began modeling bidding Begin Trading Simulation. In the top ( «The System Tester will now perform ...») type« My modeling ». (Without the quotes.)
20. Click Start.
21. When the simulation is completed, click on the button view results View Results.
22. Opens a window viewing the results of the test Test View, showing all the systems and their performance on the profits and other criteria.
23. Click once on the column net profit Net Profit, to sort of in ascending order and twice to sort them in descending order (ie, better results would be on top).
In this example, net income represents the items as we test only for points. The report shows that the best results shows the system cycle progression PS Cycle Progression, bringing in profits during the year in 39.93 paragraph (column net profit «Net Profit»). Following is the system bull / bear forces PS Bull Power Bear Power with net profit of 31.79 points.
If we look at the total number of transactions (column entitled «Trades»), we see that the PS Bull Power Bear Power had only 15 deals. PS Cycle Progression had 48 deals, three times more than the PS Cycle Regression. All other things being equal, we would have preferred a system with fewer transactions. Fewer transactions means lower commission paid to the broker.
24. Double-click PS Bull Power Bear Power, to open a window view results Result Details View.
25. Click charting Plot on Chart, so that we can see in the graphic representation of a line of capital (the line represents the capital gain of our system). Close advanced test systems to see a line of capital, based on the accompanying chart.
Line of capital throughout the year shows a relatively stable upward trend. This is what we want. It seems that PS Bull Power Bear Power Amgen suitable for those dates.
Now all that we have to do is to attach an expert PS Bull Power Bear Power, and every day to check the schedule for the availability of signals. Alerts experts tell us about the appearance of any signals since the last time, when we opened our schedule, and expert commentary will describe the details relating to each received signal.
Now we have done everything possible to reduce our risk. We found a system that performed well in tests on historical data shares, which we well know. The system matches our business identity, and we understand the theory of the indicator. We are going to invest in each transaction, only a small fraction of the money that we can afford to lose. We have removed the emotional factor as far as possible. We are ready to sell.
This completes our story on the selection of shares and to trade. Remember the following points:
• Load data for a reliable test.
• Choose a system that exceeds the investment type «Buy-and-hold».
• Choose steadily moving up through the capital.
• Limit the risk.
Chapter Three - Using tools MetaStock Power Tools
Introduction
Now that you know how high-performance systems and MetaStock MetaStock Performance Systems can improve your trade, we'll show you step by step how to use each of the additional methods MetaStock - tools Power Tools. It is in these instruments is the true power of MetaStock. If you use only for the MetaStock charting price and chart of trend lines, it is like to buy posh car, then simply climb in and sit on the sidelines. If you want your transaction has a powerful technical analysis, use the powerful tools Power Tools! In our example we will use the system pyatiperiodichnuyu «selling long positions, then a short sale» - Long Sell Short Sale-5 day (LSS).
Where to find tools MetaStock Performance System
Tools of MetaStock Performance Systems are built into MetaStock. All the tools of MetaStock Performance Systems begin with the abbreviation «PS». For example, a study to find the stocks that show signs of purchase or sale of the adaptive system of moving averages is called «PS Adaptive Moving Average (Signal).»
Rather paragraph: Tools MetaStock Performance Systems begin with «PS».
Not all of MetaStock Performance Systems are equipped with customized indicators. Many systems are used for calculations only those indicators that are already built into MetaStock. Some of the research productivity, the system for MetaStock Performance Systems, available separately through the acquisition of embedded package MetaStock Performance Systems Plus. Pay attention to the description in the fourth chapter to figure out what exactly comes with each system.
The choice of time period
How many times should you download? This is a more important issue than it might seem. You need to download enough data to get a good understanding of the long-term trend. Two or three years is usually sufficient. If you want to be a long-term investment, you may need an even deeper dive into the past. Regardless of what time period you choose, you must maintain consistency with each instrument. If you download the 500 periods in the schedule, download as 500 periods, and in your research. If the time period of your studies will be different, the results may not meet the test of your system.
Opening Graphics
Before we can use any of the tools, let's open schedule. If you know what security you want to trade, to open its schedule. We are in our example, we use Exxon Mobil.
1. Click on the icon, open the file, or select Open to open the menu File.
Rather paragraph: Help MetaStock - Opening Dialogue
(picture) icon for opening file
Label your data.
Type here the name or symbol of your security.
2. Choose Load Options from the menu to open the Options dialog Open. Enter the number of periods that you would like to see in the chart. Or, if you so prefer, select the dates of the request at the opening graphics Prompt for dates when chart is opened, if for each graphic you want to choose their times or dates. We use this option for our example. Regardless of which choice you make, he will be appointed by default for all graphs. Click OK.
3. Select the folder containing the valuable paper, you want to open. If you are using the data online using DataOnDemand ™, click on the toolbar of your label data. If you are using local data, select the icon labeled Local Data Local Data, and then specify the path to the appropriate folder. We choose the label of your data.
Rather paragraph: Help MetaStock - DataOnDemand
Access to the data online via the Internet or other online resource.
Local data is stored on your hard disk.
4. To open the calendar, type in the box «Symbol» Symbol of the security that you want to consider, and then press enter Enter. We know the name of our security, so in the Options menu to select the option to display the names of View by Name, then enter the text «Exxon Mobil» in the «Security Name». Or, if you see his valuable paper in the list, you can simply click on it twice to open the schedule.
5. If you choose option «Prompt for dates when chart is opened» to download options dialog Load Options, the following dialog box appears. Enter the number of periods or download a specific date in the past. We enter the date, separated in the past 20 years, so you can see the long-term trend. Click OK.
6. You will see the following schedule:
Now we see that the mean, saying «the trend - your friend»! Almost all of 20 years, Exxon stubbornly crept up. This is the trend, which you should take part.
We have determined that long-term trend is positive, but we do not need to use the tools on data for 20 years. The more data you load, the longer it takes each calculation. Close this schedule, and open a new download only the 1000 period (approximately four years) of data. Now we are ready to use advanced features MetaStock - Tools Power Tools.
Custom Indicators
Construction of indicators allows you to build your own custom indicators to develop or introduce the indicators that you can find in any magazine or website. Many of the high-performance systems, MetaStock Performance Systems are used in their calculations of the custom indicators. These indicators are included in MetaStock, so you can see how these indicators are on the schedule. They are presented for reference only, and you do not have to use them in its analysis.
Rather paragraph: Help MetaStock - Building a custom indicator
Building a custom indicator
Configurable indicators for MetaStock Performance Systems are created using a list of indicators Indicator QuickList on the Standard toolbar.
1. Click on a list of indicators Indicator QuickList on the toolbar and scroll down until the indicator «PS Long Sell Short Sale-5 day». (This indicator appears in the second alphabetical list at the bottom of the list QuickList.)
2. Place your mouse pointer on the small icon on the left of the indicator. Please note that the mouse pointer will turn into a palm.
3. Click and do not release the left mouse button and pull the indicator, while it will not be on any header graphics. Please note that the cursor changes again when the top is the header field.
4. Build indicator, release the mouse button. The following illustration shows how the indicator looks at the chart.
Advanced Systems Tester
All 26 high-performance systems, MetaStock Performance Systems include the test system, supplied with MetaStock free. Advanced Systems Tester allows you to test the trading system on historical data, thereby determining its past returns. Past results of the work does not guarantee future results, but as you learned in the first chapter, stocks tend to follow trends or patterns that may help predict the future. Advanced Systems Tester can show you how profitable would have been one or the other system in the past, so you can decide how risky the transaction may be coming. If the system has not worked well in the past, you should not risk their money in the future.
Rather paragraph (a picture): advanced tool icon Systems
Advanced Systems Tester should be used to obtain current trading signals. To find out whether not generated any signal current data, attach to its expert system (see page 38).
1. Select the Advanced Systems Tester from the Tools menu Tools, or click on the icon of improved test systems.
On the picture (a picture): advanced tool icon Systems
2. Scroll down the list of (left panel) and select the system PS Long Sell Short Sale-5 day (LSS).
3. Click the new model New Simulation (bottom of the screen improved tester systems). A master model.
4. The first master of the dialogue is the dialogue choice of Select Systems. Check it «PS Long Sell Short Sale 5 Day».
5. Click Next. A selection dialog securities Select Securities.
6. Click Add Securities. A dialog appears adding securities Add Securities, where you can choose any number of securities that are available locally or online.
7. Type in XOM in the Symbol. (XOM is a symbol of Exxon Mobil.)
8. Click Open.
9. Returning to the dialogue choice of securities, click Dates. A dialog appears dates Modeling Simulation Dates.
10. Select use of price data for the last specified number of periods available «Use price data from the last __ available periods», and enter 500.
11. Click OK.
12. Click Next. A dialogue choices Testing Systems System Testing Options.
Run a test system, you might consider it their specific trading arrangements, such as the size of seed capital, fees and margins. To obtain an accurate calculation of the last profit settings testing systems must be installed so as to conform as closely as possible how you would be traded on the system. To get a general idea of how well the system works in action, you can run a basic test, without any special settings. Then, if the system was profitable, you can choose your specific options to obtain more accurate estimation.
13. In the trading Trading on the top of the dialog, select test points in the «Points only test.»
14. In Portfolio Portfolio section in the center of the dialogue select long positions «Long.»
15. Click Next. A dialogue began modeling bidding Begin Trading Simulation.
16. Type «LSS» in the field under the words «The System Tester will now perform the simulation» (Now tester systems carry out simulation).
17. Click Start. The master of performance test systems close and provide a small window that shows you information on the progress of simulation. In addition, the progress test shows a blue line next to a dollar sign in the lower right corner of the working area of MetaStock.
18. After completing the test, click the button on the submission of the results View Results.
Results of tests
After you run the test, view results, click View Results. Note that the View Results button disappears after about thirty seconds, if you do not click on it. When she disappeared, the return to the Advanced Systems Tester and click on the folder system «All Systems» top of the list of Systems List (left section), and then double-click on the «LSS» in the list of simulations trades Trading Simulations List (bottom right section). This will open the Final Report Summary Report on-screen viewing of results Result Details View.
Keep in mind that your results may vary from shown here. But the basic concepts are equally applicable.
The final report shows (among other things) the profit growth in percentage, the total number of transactions and the number of winning and losing deals. In our case the profit amounted to 30.1437 points, with 58 transactions. Scroll down a bit, and you will see that 43 transactions were profitable, and 15 - are unprofitable.
Our overall net income of $ 30.1437 is very favorable compared to a profit in the strategy «Buy-and-hold», equal to 4.2850. Scroll down the dialogue a final report, we see that the average winning trade was equal to 1.1183, paragraph, or U.S. $ 111.83, if you sell 100 shares. There were 43 winning transaction, an average of six days each. Losing the deal were slightly higher on average 1.1961, paragraph, or 119.61 dollars for 100 shares, but Losing transactions was only 15. They lasted on average for fifteen days.
The dialog system report System Report has 4 other tabs:
• Bookmark orders Orders contain detailed information on each order, tracked system.
Bookmark • positions Positions contains detailed information on each position, which is open during the test.
• Bookmark the assets of Equity shows the daily change in the capital.
• System tab shows the system for this system, as well as foot and customize testing.
The arrows and a line of capital
When considering the Final Report Summary Report, click on the button charting Plot on Chart, and then close the Advanced Systems Tester. A schedule of the securities in which you'll see a line of movement of capital and the arrow signals the purchase and sale. The most desirable line of capital is that which is good steady ascending trend. Less desirable is rising, but the checkered line, and worst of all, obviously, would be a declining line. In our example we have a wonderful line of capital (in the upper window). It was so many transactions that the arrow «buying» difficult to discern.
Cleaning schedule
Before you continue, you should remove from your schedule of all the unwanted signals of buying and selling.
1. Select the total removal Delete All from the menu Edit Edit.
2. Mark the position of Symbols in the dialogue overall removal Delete All. All other options should be selected.
3. Click OK.
Researcher
All 26 high-performance systems, MetaStock Performance Systems include the study of signals that are included with MetaStock free. Ten systems include also provided with MetaStock free research productivity. The research productivity for the remaining 16 systems are supplied with a separate set of MetaStock Performance Systems Plus plug-in.
Rather paragraph: Help MetaStock - Dialog Explorer
Rather paragraph: Help MetaStock - cache-line of local securities
The study is looking for signals of shares, issuing buy or sell signals. Investigation of performance similar to testing the system. It shows the performance of the system on a strategy «Buy-and-hold».
The researcher works with online and local data, but faster in operation with local data.
Choosing shares
What actions should you include in your study? It depends on your system. Short-term system picked up a very small movement would best work with the biggest, most liquid stocks. Good examples of this type of shares are shares of S & P 100, so we'll use for our example, S & P 100. Long-term system, designed to catch more traffic, could be applied to a broader base of the shares, for example, S & P 500, or even the entire set of American shares available on CD-ROM Data MetaStock Data CD. Try to study performance in different events and see what kind of action shows the best results. You can filter out stocks that are not suitable for the price, volume or other criteria (see page 36).
Setting preferences study
To obtain reliable results when carrying out research, you should download at least 500 records. A large number of records will require more time for calculations, so do not be surprised if the 20-year scan will take several hours.
Rather paragraph: Help MetaStock - Setting Research
Rather paragraph (a picture): An icon explorer
Do not forget that the number of entries must be equal to the number of time periods that you load in the graphics, otherwise the results would not be suitable for advanced testing systems.
1. Select a researcher The Explorer On the Tools menu, Tools, or click on the icon of the researcher.
2. Click Settings in the Options dialog researcher.
3. Enter the number of records to load. For our example we enter 1000 records (approximately 4 years).
4. Click OK.
Follow-up studies
First, we will study productivity. Investigation of performance tells us how the system works for a group of shares, compared with a strategy «Buy-and-hold». We can get an idea of how well our system LSS with other actions, in addition to Exxon Mobile.
1. Select the study «PS Long Sell Short Sale-5 Day (Perf)».
2. Click Studies Explore.
3. A selection dialog securities Select Securities.
4. Click the Add Securities ... A dialog appears adding securities Add Securities.
5. Double-click a folder under the name «Stocks-Co ...», then double-click on the folder called« S & P 100 ».
6. Click tools Tools, then click Select All.
7. Click Open.
8. Click OK to begin the study.
9. After completion of the study, click on the Reports button in the dialog reports the completion of the study Exploration Completed, to get a full report on the results.
The results of the research productivity
Dialogue Report Research Exploration Report is the top three bookmarks - the results Results, bounce Rejects research and Exploration. In the bounce show all securities that have been rejected by the filter study, as well as the reasons. Window Settings study shows that have been used in the study. In the results show the following columns.
Rather paragraph: Help MetaStock - Report on the results
• L Point - the number of points won per share in long transaction during a specified time period.
• S Point - the number of points won per share in short transactions in a given period of time.
• LS Point - the total number of points won per share in the short and long transactions over a given period of time.
On the paragraph: The efficiency measures the transaction performance of the system on a strategy «Buy-and-hold».
• L Perf - performance long transactions, expressed as the efficiency of transactions.
• S Perf - the performance of short transactions, expressed as the efficiency of transactions.
• LS Perf - performance of all transactions, as expressed through the efficiency of transactions.
Please note that the items - this is not the same as interest. If the system wins, say, 5 points, which means earnings per share of $ 5 dollars, which could be either way from 10 to 15 U.S. dollars, and the movement of up to $ 100 to $ 105 if you sell 100 shares 5 points means a profit of $ 500
By default, results are sorted by the name of security. The best performing emerging top of the list. We sort by the column «L Perf», because we use only long positions, and we want to know how well our system in comparison with the strategy «Buy-and-hold». To sort the list by the column «L Perf», we click on the column heading. Single-click allows sorting in ascending order, so we click once more to entrust sort in descending order.
To get an idea of how the system works for all the shares, scroll down (using a scroll bar right) until you see in the column «L Perf» negative value. In this example, this occurs after about 3 / 4 of the list, which tells us that the system has proved better strategy «Buy-and-hold» to about 3 / 4 of the securities included in the S & P 100. This is an excellent result.
You can get more information about the study through the buttons to the right:
• Inspect button allows you to see results every day.
• Open Chart button to open the selected schedule or schedules.
• Sort button lets you sort three different columns.
• Print button prints the results.
• Save List button will save the securities to the list. This list can then be used as a source for later studies.
The effectiveness of the transaction
The main issue is the process of testing the effectiveness of the transaction. If the profit of the transaction for the day exceeds the profit for the day when the strategy «Buy-and-hold», the system will have a positive efficiency of the transaction. For example, if the system was used during 250 of 1 000 possible days and won 250 points, she made $ 1 per share per day. If the strategy «Buy-and-hold» for the same 1 000 days, won 250 points, meaning that she earned only 25 cents per share on the day, therefore, the efficiency will be equal to 0.75 (1.00 minus 0.25 ), although both systems have won the same absolute amount. The point is that the system received the same income for 25% of the time it took for the strategy «Buy-and-hold», it means that your money was in 75% of the time available for other transactions. Positive transaction efficiency does not imply that the system was profitable, it means that the system has surpassed the results obtained for the purchase and holding of that security.
The results of the research signals
To implement the study a signal, follow the instructions set out above in the section «Study», but go to the study «PS Long Sell Short Sale-5 Day (Signal)».
The module studies the signals show a list of all securities issued in the current bar signal buy or sell.
The report studies the signals are shown following columns:
• Longs - displays 1, if a condition for opening a long position, otherwise 0.
• Shorts - it displays 1, if a condition for the opening short position, otherwise 0.
If you study the signals brings too many results, add additional filters (see next section). Follow-up studies of signals for LSS provides us with the following results:
It was 12 of possible purchases, and two possibilities for the short sale. Add another filter to reduce the number of shares.
Adding an additional filter
For systems, making too many results, you can use additional filters, such as the restriction on price or volume. For the purposes of our example, we sell only the very large and liquid stocks. Therefore, we add a filter, which requires that the average volume of trades during the 50-day period of at least five million shares a day, and the price was above U.S. $ 5 per share.
Rather paragraph: Help MetaStock - Filter Syntax
1. It remains to be chosen study «PS Long Sell Short Sale-5 day (Signal)». If it is not selected, do it, and then click Edit.
2. Select the filters Filter. The current filter is «ColA or ColB», screening campaigns, which have no value or 1 in column A or column B.
3. Adding to the volume. In human language we would say: «ColA or ColB and large volume». The trouble is that MetaStock does not know whether you want to process the first «or» or «and». To clarify this, we first take the «ColA or ColB» in parentheses. The formula should now look like this:
(colA OR colB)
Now add to the filter as follows: «and mov (volume, 50, simple)> 50000». It is divided as follows:
and => this condition must also be true
mov (=> is the rolling average
volume, => amount
50, => in the last 50 days
simple) => build on the simple moving average
> => The amount must be greater than
50000 => 5 million shares (the amount is transferred to our data provider Reuters Datalink in hundreds).
Now, the formula should look like this:
(colA OR colB) AND Mov (VOLUME, 50, SIMPLE)> 50000
4. Add a filter that excludes all the action, standing less than 5 U.S. This filter is written simply as «and Close> 5».
Now, the formula should look like this:
(colA OR colB) AND
Mov (VOLUME, 50, SIMPLE)> 50000 AND CLOSE> 5
5. Click OK to save your changes.
6. Click Explore, to re-run the study with the new filters.
At this time, the results showed only two signals of purchase - General Electric, and Bristol Meyers Squibb. Let's look at both of these graphics. Click on General Electric, and then press and hold Control and click on the Bristol Meyers, to select them all at once. Then click the Open Chart, to open both the schedule. Run the advanced test systems and test drive of LSS in both schedules. Now we can compare the lines of capital and results of the test system and to decide what to sell.
Expert Advisor
All 26 high-performance systems, MetaStock Performance Systems include the expert's supplied with MetaStock free. Expert Advisor to automate your trading system, applying the rules of your system to the latest data every time you open the schedule. If there was an alarm, a warning, a signal arrow indicates the place on the schedule. Over the same signal is described in detail in the comments of an expert.
Rather paragraph: Help MetaStock - Dialogue expert advisers
(Picture): Icon expert advisers
The experts shall be affixed to the schedule, with only one expert may be attached to the schedule at the same time. When you attach an expert for the first time, the system applies to all data in the chart. In the future, when you open the schedule attached to the expert, warning will be generated only for the most recent data. The signals also will continue to appear for all data.
Functional features of expert systems, MetaStock Performance Systems include:
• Symbols - buying and selling signals are indicated by arrows on the graph.
• Isolation - the price bars are colored green for long positions and red for short.
• Alerts - a dialogue box appears, notifying you about buying or selling signals.
• Comment - Description of the buy and sell signals.
Attaching the Expert
1. To attach an expert to open the schedule, select Expert Advisor Expert Advisor to the Tools menu Tools, click on the icon or an expert adviser on the toolbar. If the schedule does not open, go to page 22 to find the information on the opening graphics.
Rather paragraph (a picture): An icon expert advisers
2. Select an expert «PS Long Sell Short Sale-5 Day».
3. Click on the button fastener Attach.
4. Click on the close button Close. Now the expert is attached to the schedule.
Editing Expert
What if you want to open only long positions, and you do not need signals that are displayed for a short position? Edit the expert so that he showed only long signals, is a snap.
Rather paragraph: Help MetaStock - Creation Expert
Rather paragraph (a picture): An icon expert advisers
1. Select expert advisers in the tools menu, Tools, or click on the icon of expert advisers on the toolbar.
2. Select the expert for «PS Long Sell Short Sale-5 Day».
3. Click Edit.
4. Dialogue of expert advisers has six tabs - Names Name, trends Trends, comments Commentary, focuses Highlights, symbols Symbols and warnings Alerts. We will edit bookmarks Highlights, Symbols and Alerts.
5. Click on the Highlights. Disconnect option «Shorts.»
6. Select the Symbols. Disconnect option «Enter Short» and «Exit Short.»
7. Click the Alerts. Disconnect option «Enter Short» and «Exit Short.»
8. Click OK to confirm the changes you made.
9. Click Close, to close the dialog expert advisers.
The following illustration shows the changes in the schedule. Now, when we removed the short positions, rather than downward arrows indicating the closure of long transactions (and the opening short transactions), we have an exit sign.
View comments
1. Select expert commentary Expert Commentary on the menu View.
2. A comment-type shown below. It will explain all of today's signals, but will also contain a brief description of the system.
Basic Principles of Trade
Trade - risky business, but there are some steps you can take to increase your chances of success. The following does not constitute a complete description of the trade, but only a few tips in order to send you in the right direction.
• If you have never traded before, study some time training in trade. Take all actions related to trade, but instead of the actual placement of orders recorded their transactions on the sheet of paper. Or use one of the websites of virtual commerce, available on the Internet. Be honest with regard to points of entry and exit! You may wonder how it would be difficult to adhere to the trading system.
• Find a trading system that matches your style of trading, your risk tolerance and the markets in which you want to sell. If you can not spend much time tracking the market and do not like risk, use only long positions in the system with a small number of transactions. Use near the foot, and possibly to check the fundamental parameters of the action before you buy it. If you want to trade every day and love the risk, find the system that generates frequency signals. Your position may be more severe fluctuations, but you can get more profit.
• determine their levels of stop (the maximum you are willing to lose) to accommodate the deal. The worst feeling in the world - to watch the action, pushed beyond the point of foot, which you ignored in the heat of battle.
• Overall test systems showed that the market shares of some long positions only, without opening a short position, in principle, improves performance. This can be explained by the natural tendency of stock prices to increase. There are also other difficulties associated with short selling of shares - may be difficult to borrow shares, you can not sell short falling action, you may be forced to close the position, even if you do not want to do this, you have unlimited risk and limited profit, and etc. These factors should be considered when making decisions on opening short positions.
• deal only with money that you can afford to lose. Trade carries enough without adding the stress and tension related to the sale of other people's money.
• The risk in any transaction, only a small percentage of your trading account. Do not let a bad deal reset your account.
• Use a logical and disciplined approach to trade (ie to provide high-performance system that MetaStock Performance Systems). Do not buy Nike stock just because you spend so much money on sneakers for their children.
• The more you'll learn about trade, the better.
Disclaimer
Trading in securities is not an exact science. It should consider the following factors.
The future may not resemble the past
There is no guarantee that the future behavior of the prices of the securities will be similar to past behavior of prices.
Trade inherent risk
You may lose part or all of their money. There is no guarantee that future results will coincide with the results of advanced test systems.
Commissions and slippage
Research productivity, only count points score system, but do not include commissions, slippage, taxes, or other factors. Promising system must be confirmed by the test run the system with the test settings, consider your specific situation.
Positive transaction efficiency
Positive transaction efficiency does not imply that the system is profitable, it only means that it is superior to a strategy «Buy-and-hold».
Lack of support from the authors
Most of these systems is based on indicators developed by renowned guru of technical analysis, but they do not develop these systems. Many systems are a variety of systems promoted by these gurus. These systems are not in any way and are not supported by these sponsors. If the author is not mentioned, it means that the system is a unique system of group analysis trading systems Trading Systems Analysis Group.
This is not a proposal
Nothing in this guide does not constitute an offer or request to buy or sell any of these securities, they are used only to aid in the interpretation of the described methods of analysis. This information should be used only by those investors who are aware of the risks inherent in securities trading. Equis International and Trading Systems Analysis Group are not responsible for any damages resulting from use of this product or its contents.
Chapter Four - Description of MetaStock Performance Systems
Introduction
This section describes each of the high-performance systems, MetaStock Performance Systems to help you decide which system is better suited for you. Each system includes a brief description of the strategy, a description of the requirements for the signals, the characteristics of the transaction, allowing you to see how frequently trading system, and a list of material for further reading.
Please note: copying and distribution formulas of MetaStock Performance Systems is a violation of your license agreement. Do not use the organizer of the formulas Formula Organizer for export and distribution of these systems.
Description
This section provides a brief description of the system. Please note that most of the systems to a greater or lesser extent, a variety of original systems developed by the authors. For example, the system uses a standard PS CCI + / - 200, rather than the traditional level of + / - 100, as proposed by the author Donald Lambert. These varieties are the result of testing on historical data of many varieties of standard systems.
Alerts
Indicates conditions of entry and exit for the short and long positions. Not all systems use the short position. In most cases, the signals «long entry» and «short entry» are identical, as are the signals of «short entry» and «long exit». In this case, the system will bid 100% of the time, if you're selling and long and short positions. Some systems have different criteria apply and exit the market only a fraction of the time.
Characteristics of transactions
System MetaStock Performance Systems were tested on a set of actions, including moving and sedentary, with the ascending trend, and top-down trend, and moving sideways. The result of these tests is the frequency of transactions. It is understood that the use and long and short positions, and offered to close the transaction without delay.
Further reading
There are references to additional sources pertaining to the system or the author.
Systems
Adaptive Moving Average (Adaptive Moving Average)
Bull / bear force 1 (Bull Power Bear Power 1)
Bull / bear force 2 (Bull Power Bear Power 2 *)
Bull / bear's strength 3 (Bull Power Bear Power 3)
Commodity channel index CCI (Commodity Channel Index)
Predskazuyuschy Oscillator Chande (Chande Forecast Oscillator *)
Turn CMO (CMO Reversal)
Breakthrough of the consolidation (Consolidation Breakout)
Model 1234 Cooper (Cooper 1234 Pattern)
Progression cycle (Cycle Progression)
Dynamic Momentum Index 1 (Dynamic Momentum Index 1)
Exponential Moving Average (Exponential Moving Average *)
Fractal Trading System 1 (Fractal Trading System 1)
Fractal Trading System 2 (Fractal Trading System 2)
Sales of long positions, then a short sale - 5 days (Long Sell Short Sale - 5 Day *)
Figure 1 MACD (MACD Histogram 1)
Figure 2 MACD (MACD Histogram 2)
Perekuplennost / pereprodannost Mayzelsa (Meisels Overbought / Oversold *)
Sinus wave MESA (MESA Sine Wave *)
The system of trade pattern 1 (Pattern Trading System 1 *)
Percentage crossing of 3% (Percentage Crossover 3%)
Projected oscillator 1 (Projection Oscillator 1 *)
StochRSI
Index fluctuations (Swing Index *)
Vertical Horizontal Filter (Vertical Horizontal Filter)
Breakthrough volatility (Chaikin) - Volatility Breakout (Chaikin) *
* Study performance of this system comes with MetaStock free.
Adaptive Moving Average
Description
Adaptive Moving Average (AMA) was developed by Perry Kaufmann. AMA is designed so that you can adjust its sensitivity, depending on the trend of market forces. Cornering the market with a lot of noise requires a longer-term moving average, than the market with a strong trend. AMA revises the number of periods moving average, depending on the forces of the market trend.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open up a long / cover a short position when the AMA changes direction from the fall to increase.
On the paragraph: The system is configurable indicator.
Close long / short open position when the AMA changes direction from higher to fall.
Characteristics of transactions
System AMA offers a deal about once every four to six days, which makes it suitable for short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
Trading Systems and Methods. (Wiley Trading Advantage Series) John Wiley and Sons, Inc. 1998
Smarter Trading: Improving Performance in Changing Markets. McGraw-Hill. 1995
Bull / bear force 1
Description
Systems of bull / bear forces based on the concept of bull / bear force, developed and presented by Alexander Elder. Bull power is calculated by deducting from the maximum price of 13-Periodically exponential moving average. Usually, it is displayed as a graph, oscillating above and below the zero line. The value above the zero line gives the force of bulls. Bear Power is calculated by subtracting the 13-Periodically exponential moving average of the minimum bid. She also appears in a graph, oscillating above and below the zero line. The value below the zero line gives the force of bears.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Until the bull power indicator on the zero line more than an indicator bear forces zero line (in other words, Bull strength greater than the absolute value of force bears), supported by a long position. If the strength of the bears under the zero line more than the Bull of the zero-power line, then maintained a short position.
Characteristics of transactions
The system of bull / bear force 1 offers a deal every one to two weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Study Guide for Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Bull / bear force 2
Description
Explanation of the principles of bull / bear forces see in the Bull / bear force 1 (page 47).
Rather paragraph: Research productivity of the system comes with MetaStock free.
System Bull / bear power indicator 2 is not bull / bear forces directly. Instead, it appeals to the 5-Periodically inclination of the regression line bull and bear forces forces to determine which of them is gaining momentum. Position open, depending on which of them shows a great tendency to increase strength.
Alerts
Open up a long / cover a short position when the tilt of 5-Periodically the regression line bull's strength increases, while the same slope bear force decreases.
Open short / close a long position when the 5-Periodically slope of the regression line bull's strength decreases, while the same slope bear force increases.
Characteristics of transactions
System Bull / bear force 2 offers a deal once in every two to four days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
See Bull / bear force 1
Bull / bear force 3
Description
Explanation of the principles of bull / bear forces see in the Bull / bear force 1 (page 47).
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
System Bull / bear power 3 monitors the movement of lines of force indicators bull and bear forces on the rise and open positions when the lines are deployed.
Alerts
When the bear's strength is lowered to a minimum and then begins to grow again, the system waits for the next movement down. If the bear's strength will not be able to go down as low as in the first oscillation, it is believed that the bears are losing strength and a long position. Both the minimum should be below zero, so that the signal was due to the entrance.
When the Bull rises to a peak strength and then begins to decline again, the system waits for the next upward movement. If the Bull will not be able to power up as high as in the first oscillation, it is believed that bulls are losing force, and a short (bear's) position. Both the peak must be above zero, so that the signal was due to the entrance.
Characteristics of transactions
The system of bull / bear force 3 offers transaction times of two to four weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
See Bull / bear force 1
CCI (commodity channel index)
Description
Commodity channel index (CCI) was developed by Donald Lambert. Despite its name, this indicator is suitable for the shares, and commodity futures. Dr M Lambert proposes to use the CCI as an indicator of perekuplennosti / pereprodannosti, where 100 is perekuplennostyu, and - 100 is pereprodannostyu.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
The system shipped with MetaStock, based on further research, have determined that the + / - 200 gives a more pronounced signal a turn, and therefore closer to the ideal.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Open up a long / cover a short position when the 14-periodic CCI falls below - 200. Open short / close a long position when the 14-periodic CCI rises more than 200.
Characteristics of transactions
System CCI offers a deal once every ten or twenty weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
Futures magazine, October 1980
Predskazuyuschy Oscillator Chande
Description
Predskazuyuschy oscillator (Forecast Oscillator, FO) was developed by Tushar Chande (Tushar Chande) and is calculated by subtracting the closing price of the indicators of linear regression, and then formulate the result as a percentage. M-r Chande recommends using the intersection of the 3-FO Periodically moving average as a signal that the trend in the direction of motion of the oscillator may be inevitable. Predskazuyuschy oscillator should be positive for purchases and negative for sales, too late to prevent the occurrence.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when the 14-periodic predskazuyuschy oscillator crosses and goes above its 3-Periodically moving average and is in the positive territory.
Open short / close a long position when the 14-periodic predskazuyuschy oscillator crosses and goes below its 3-Periodically moving average and is in negative territory.
Characteristics of transactions
The system offers FO transaction approximately every three weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
The New Technical Trader: Boost Your Profit by Plugging Into the Latest Indicators (With Stanley Kroll). (Wiley Finance Editions) John Wiley and Sons, Inc. 1994
Beyond Technical Analysis: How to Develop and Implement a Winning Trading System. (Wiley Finance Editions) John Wiley and Sons, Inc. 1997
Turn CMO
Description
Chande Momentum Oscillator (CMO) was developed by Tushar Chande Momentum indicator as a standalone. With regard to the turn CMO, is to open a long position, it waits until the CMO does not spread upwards after descending Momentum. Once the CMO is developed, long position is closed, and the short position open. This places the industry in the Momentum of the securities (except for the first day of turn CMO).
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open up a long / cover a short position when the current 13-Periodically CMO is higher than the previous CMO, and the previous CMO - below the preceding bar (ie, CMO has formed the base and turned up).
Close long / short open position when the current 13-Periodically CMO is less than the previous CMO, and the previous CMO - above, preceded by the bar (ie, CMO formed top and turned down).
Characteristics of transactions
The system offers a CMO transaction approximately every three days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
See Predskazuyuschy Oscillator Chande.
Breakthrough of the consolidation
Description
The system uses a breakthrough from the consolidation of tape Bollindzhera John Bollindzhera and the average true range indicator (Average True Range) Uellesa Wilder. However, this system is not linked to any of the methods of the two authors. The system keeps track of narrow strips Bollindzhera indicating a decrease in volatility, and then break the tape to give a signal to buy or sell.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Breakthrough of the consolidation is a signal of two parts.
First, the width of the tape Bollindzhera should uzhatsya around the price to a point where the distance between the top and bottom lines will become less 1? value of 1-periodically averaged true range.
After compression, the tape:
Open a long position when prices breaks above the upper edge of the tape Bollindzhera.
Open a short position if the price breaks below the bottom line of the tape Bollindzh.
Out of long positions when the price crosses and goes below the 20-Periodically simple moving average.
Out of short positions when the price crosses and goes above 20-Periodically simple moving average.
Characteristics of transactions
The system offers a breakthrough from the consolidation of the transaction approximately every four to six weeks. Typically, a transaction lasts from two to four weeks. Since the output signals differ from the input signals, the system works in the market for about 30% - 40% of the time.
Further reading
Technical Analysis of Stocks & Commodities magazine, February 1992
Model Cooper 1234
Description
System «Model Cooper 1234» is based on the trading system Jeff Cooper 1-2-3-4. She finds that trend, and then waiting for departure, so that could open the position to continue the trend. While the overall scheme is approximately the same as that of 1-2-3-4, the system is that the input is carried out immediately (because the trend has already been identified). In addition, it developed a floating stop (for long positions) - when the price goes below the minimum of the previous day (provided that the position is moving in favor of the transaction). When working with short positions are being done the other way around.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
A full description of the signals can be found in the book, Dr. Cooper meters.
Characteristics of transactions
System «Cooper 1234» proposes a deal about every ten or twenty weeks. Most transactions lasts about one or two weeks. The system used to trade for less than 10% of the time, so the most appropriate strategy would be to apply it to a basket of shares.
Further reading
Hit and Run Trading: The Short-Term Stock Traders' Bible. M. Gordon Publishing Group. 1996
Hit and Run Trading II: Capturing Explosive Short-Term Moves in Stocks. M. Gordon Publishing Group. 1998
Hit and Run Lessons: Mastering the Trading Strategies. M. Gordon Publishing Group. 1999
The 5-Day Momentum Method. M. Gordon Publishing Group. 1999
Cycle progression
Description
System cycle progression is for anticipating short-term volatility of prices. The system determines the time when the last 5-day period days from the closing down is greater than the days of the closing up, and then opens a long position. When conditions are changing in the opposite, it closes a long and opens a short position.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
This system is configurable indicator.
This system is designed to capture very short-term cycles, and must be used with caution. While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses. You should use stop-orders, so as not to give a little unfortunate transactions destroy all the accumulated profit.
Alerts
Open up a long / cover a short position when in the past five days the number of days from closing up more than the number of days from closing down.
Open short / close a long position when in the past five days the number of days from the closing down more than the number of days from closing up.
Characteristics of transactions
The system offers a bargain-cycle progression at approximately four to six days, which makes it suitable for short-term traders. The system is always engaged in trade, if you use both long and short positions.
Dynamic Momentum Index 1
Description
Dynamic Momentum Index (DMI) is essentially RSI, as necessary, automatically adjusts the length of the period. DMI developed Tushar Chande and Stanley Kroll.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open a long position when the DMI falls below 30. However, the output approach other than the typical excess of 70 with follow-up care below. The position is closed, if at any time of the transaction price falls below the 5-Periodically simple moving average (acting as a rolling stop). The problem here, however, is that when the signal to enter the price, as a rule, is already below the 5-Periodically simple moving average, therefore, necessary protective measures to get out of position before you can grow excessive damages, but This should give enough time to rise above the rolling average, to produce a potential output signal. This is accomplished by checking the prices. If the position is loss-making third consecutive day of her fall.
Short positions of the situation should be vice versa.
Characteristics of transactions
System DMI offers transaction approximately every three to five weeks. Transactions are typically lasts one to two weeks. The system operates on the market 30% -40% of the time.
Further reading
The New Technical Trader: Boost Your Profit by Plugging Into the Latest Indicators. (Wiley Finance Editions) John Wiley and Sons, Inc. 1994
Beyond Technical Analysis: How to Develop and Implement a Winning Trading System. (Wiley Finance Editions) John Wiley and Sons, Inc. 1997
The Business One Irwin Guide to the Futures Markets. Irwin Professional Publishing. 1992
The Professional Commodity Trader. Traders Press. 1995
Exponential Moving Average
Description
System exponential moving average (EMA) extremely quickly following the direction of prices. Rather than attempting to determine the intersection of the single moving average optimum length, it is simply waiting for the 2-periodic exponential moving average starts to move up or down. If the 2-periodic EMA higher than yesterday's 2-periodic EMA, the system opens a long position. If the 2-periodic EMA is lower than yesterday's 2-periodic EMA, the system opens a short position.
On the paragraph: Research productivity of the system comes with MetaStock free.
When working with these mobile systems is useful to use protective foot. This particular system to help prevent unnecessary losses can be used as a minimum the last stop of the day (or, in the short position, the maximum of the previous day).
Alerts
Open up a long / cover a short position when the current 2-periodic EMA more previous 2-Periodically EMA.
Open short / close a long position when the current 2-periodic EMA is less than the previous 2-Periodically EMA.
Characteristics of transactions
System EMA offers a deal about every two to four days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Fractal trading systems 1 and 2
Description
Although the sale of securities, there are many definitions of «fractality», the definition used in these systems is the younger version of the type defined by Bill Villyamsom, Ph. D., and his methods of trading based on the chaos. By Bill Villyamsu, «bottom-up fractal» is defined as a central bar, surrounded by two lower maxima. «Descending fractal» represents the opposite of where the central bar has two sides to a higher level.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Both systems are based on a very small percentage of the total trade of Bill Williams.
Alerts
Fractal system 1 opens a long position when the price goes above the last bottom-up fractal. When the price falls below its most recent top-down fractal, being out of position and opening a short position.
Fractal system 2 is identical to 1 except that instead of being deployed position after the price goes below the most recent downward fractal, it closes the position after crossing the minimum of the second after the most recent downward fractal. In a fractal system, 2 short positions do not apply.
Characteristics of transactions
Fractal system 1 offers the transaction approximately every two to four weeks; fractal system 2 offers the transaction approximately every six to ten weeks. Fractal system 1 is always involved in trade, if you use both long and short positions. Because the fractal system 2 does not use the short position, it is in position 50 - 70% of the time.
Further reading
Trading Chaos: Applying Expert Techniques to Maximize Your Profits. (Wiley Finance Editions) John Wiley and Sons, Inc. 1995
New Trading Dimensions: How to Profit from Chaos in Stocks, Bonds, and Commodities. (Wiley Trading Advantage) John Wiley and Sons, Inc. 1998
Sales of long positions, then a short sale - 5 days
Description
Indicator 'long position', 'sale', 'short sale' ( 'Long', 'Sell', 'Short Sale', LSS) was developed by George Angell. It was conceived as a 3-periodic indicator only for intraday trading, but is used here as a 5-periodic indicator suitable for the purpose of the sale price end of the day (almost the end of the day). Here it is used as an indicator of perekuplennosti / pereprodannosti. When the indicator moves below the LSS 0.3, it is seen as pereprodannost. When it moves above 0.7, it is seen as perekuplennost. In principle, this indicator (depending on what mode it is at any given time) may be leading or lagging indicator on Stochastics of the same period, and if desired can be used with the same trading techniques.
Rather paragraph: Research productivity of the system comes with MetaStock free.
This system is configurable indicator.
This system requires accurate price discovery.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Please refer to the description of this indicator to books m-ra Angell.
Characteristics of transactions
System «Selling long position, then a short sale» offers transaction approximately every three weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
Sure-Thing Options Trading: A Money-Making Guide to the New Listed Stock and Commodity Options Markets. New American Library Trade. 1984
Winning in the Futures Markets: A Money-Making Guide to Trading, Hedging and Speculating. Probus Publishing Co. 1990
How to Triple Your Money Every Year With Stock Index Futures. Windsor Books. 1984
Real Time Proven Commodity Spreads: The 20 Most Consistently Profitable Low-Risk Trades. 1985
MACD Charts 1 and 2
Description
Indicator «schedule MACD» was to promote Alexander Elder. This system uses the schedule as well as the commonly used normal MACD; it looks for differences between the indicator and the price. Schedule MACD is calculated by subtracting the 9-Periodically exponential moving average of the MACD of the MACD. Next, the deviation of prices from this indicator, and the transaction was called in the direction of movement of the indicator with the hope that soon will be followed, and price.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
This system is configurable indicator.
Although it is presented here as a complete system and, as such, it is functional, it is primarily a method of entry. When using this system should also think about a preferred strategy for your stop-loss and exit.
Alerts
MACD graph 1:
Open up a long / cover a short position when the MACD graph shows a positive deviation from the price (in other words, the schedule makes new records, while prices can not make a new max).
Open short / close a long position when the MACD graph shows a negative deviation from the price (in other words, the schedule makes the new minimum, while the prices can not make the new minimum).
MACD Graph 2:
Signal the opening of the long / short position of opening the same as for the graphics MACD 1. A long position is closed when the schedule MACD turns down. A short position is closed when the MACD graph turns up.
Characteristics of transactions
Systems MACD charts 1 and 2 suggest the transaction of approximately every ten to twenty weeks. The system schedule MACD 1 always participates in the trade, if you're selling and long and short positions. The system schedule MACD 2 is involved in the sale of 20% -30% of the time.
Further reading
Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Study Guide for Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Perekuplennost / pereprodannost Mayzelsa
Description
Ron Mayzels developed an indicator Mayzelsa as an indicator of perekuplennosti / pereprodannosti, which moves between +10 and - 10 and based on the fact whether the market closes above or below the previous day auction over the past 10 days. It applies the concept of the original entrance, which opens a long position when the indicator reaches - 6 (pereprodannost), a short position - when the indicator reaches 6 (perekuplennost). In this case, was added to output, when the indicator reaches a zero level, moving in any direction. This gives a very good short-term approach to trade.
Rather paragraph: Research productivity of the system comes with MetaStock free.
This system is configurable indicator.
The system perekuplennosti / pereprodannosti Mayzelsa will work best with a cyclical rather than trend securities.
As with all indicators and systems perekuplennosti / pereprodannosti, although this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Open a long position when the indicator drops to Mayzelsa level or below - 6 (this value indicates that six of the last 10 periods of trade decline in the prices shown).
Close long positions when the indicator Mayzelsa rises to the level or above 0.
Open a short position when the indicator Mayzelsa raised to level 6 or above.
Close the short position when the indicator Mayzelsa falls to or below 0.
Transaction Specifications
The system perekuplennosti / pereprodannosti Mayzelsa offers transaction approximately every ten to fifteen weeks. The deal usually lasts from one to four weeks. The system is in the sale of 10% -20% of the time.
Sinus wave MESA
Description
Indicator «sinus wave MESA» was developed by John Ehlersom. Sam is an indicator for the determination of whether the securities in cyclical trend or condition. However, short of time used in this system does not allow to really hold this distinction. Instead, the system tries to identify and use the very short-term cyclical behavior. Because your time is very short, sinus wave MESA almost converted into a binary indicator of a very sharp sensitivity to a change in direction. Transactions in the system can easily occur daily.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when the 2-periodic indicator MESA Lead Sine less than 2-periodic indicator MESA Sine Wave.
Open short / close a long position when the 2-periodic indicator MESA Lead Sine more than 2-periodic indicator MESA Sine Wave.
Characteristics of transactions
The system offers a sinus wave MESA transaction approximately every three days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
Technical Analysis of Stocks & Commodities magazine, November 1996 MESA and Trading Market Cycles. John Wiley and Sons, Inc. 1992
The system of trade pattern 1
Description
The system of trade pattern 1 is designed for use in stocks and stock indexes, because it relies on stocks exhibiting inherent tendency to increase. The system should be the philosophy that any movement upwards becoming signal input, and any downward movement after the commencement of a confirmed a rising trend (two days or more bottom-up movement) becomes a valid signal output. Being a very fast system, it can also be extremely profitable. Since ascending the slope has already taken into account, the system does not use the short position.
Rather paragraph: Research productivity of the system comes with MetaStock free.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Open a long position after the two bottom bars in succession.
Close a long position in the first descending bar after at least two consecutive ascending bars.
Characteristics of transactions
The system of trade pattern 1 offers transaction approximately every two weeks. Trades usually last one to two weeks. Because the system does not use the short position, the system is in the sale of approximately 60% -70% of the time.
Percentage crossing 3%
Description
The system opens the percentage of crossing the deal after the security will increase by 3% while out of the deal after the securities will decline by 3%. Thus, this indicator, following the trend. Using per cent allows the indicator to be tied to the price of individual security. Drawback here is that if the price moves in cyclical movements, the system will have an excessive number of loss-making transactions at the extrema of oscillations.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open up a long / cover a short position when the security is increased by 3%.
On the paragraph: The system is configurable indicator.
Open short / close a long position when the securities will fall by 3%.
Characteristics of transactions
The system of 3% per transaction offers crossing approximately every three to six days (more often for moving the shares, less frequently for stable shares). The system is always engaged in trade, if you use both long and short positions.
Projected oscillator 1
Description
Projected oscillator is in principle Stochastics, adjusted for tilt. It is designed Melom Vidnerom, Ph. D. This is an indicator that identifies its position on the projected tapes (Projection Bands). In this system, unlike the trade oscillator position about 20/80, as is done with conventional stochastic oscillators, trade is conducted on short-term smoothed projected oscillator on its own even more short-term moving average.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when 8/3-periodichny projected oscillator goes above its 3-Periodically moving average.
Close long / short position open when 8/3-periodichny projected oscillator goes below its 3-Periodically moving average.
Characteristics of transactions
The system of «projected oscillator 1» proposes a deal about every two to four days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
Technical Analysis of Stocks and Commodities magazine, July 1995
StochRSI
Description
Indicator StochRSI developed Tushar Chande and Stanley Kroll. One of the problems associated with the use of RSI as an indicator perekuplennosti / pereprodannosti is that because of the built-smoothing may take a long time before the extreme. As a result, it misses many important trading signals. Application of a stochastic process for the RSI has resulted in the extreme will be reached within a limited time (preferably when a credible signal of trade). As with the stochastic oscillator, the system is traded around the extremes of 20 and 80.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
This system is configurable indicator.
As with all indicators and systems perekuplennosti / pereprodannosti, although this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you.
The New Technical Trader: Boost Your Profit by Plugging Into the Latest Indicators. (Wiley Finance Editions) John Wiley and Sons, Inc. 1994
Beyond Technical Analysis: How to Develop and Implement a Winning Trading System. (Wiley Finance Editions) John Wiley and Sons, Inc. 1997
The Business One Irwin Guide to the Futures Markets. Irwin Professional Publishing. 1992
The Professional Commodity Trader. Traders Press. 1995
Index fluctuations
Description
Index fluctuations Uellesom Wilder was created to identify the true price of the securities by assessing the price of opening / maximize / minimize / close the current bar, as well as the previous bar. Then the system displays this ratio as a value above or below the zero line. Because she is looking for a change in the direction of the price (perebiraya bar for the bar), it traded with a philosophy very similar trading pattern to 1, but much more often. It also allows the use of short positions.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when the 3-day fluctuations in the index is above 0. Close long / short open position when the 3-day fluctuations in the index is below 0.
Characteristics of transactions
The system of index fluctuations offers transaction approximately every three days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
New Concepts in Technical Trading Systems. Trend Research. 1978
The Adam Theory of Markets or What Matters Is Profit. Trend Research. 1987
Vertical horizontal filter
Description
Vertical horizontal filter (VHF) was developed by Adam White. It is like a coefficient of consistency between the yield of the securities and the market as a whole (r-squared) and Uellesa Wilder ADX indicator that identifies a trend / netrendovoe behavior, except that it's not such a sensitive, as the r-squared (which reduces the number of loss-making transactions in the oscillation) and a much more sensitive than ADX (which increases the chance to enter at the beginning of the trend). Identifying trend status, VHF is trying to determine in which direction is the trend, examining the slope of the linear regression with the same periods that the VHF, and then opens the appropriate position. Withdrawal shall be effected when the trend stops.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open a long position when the 21-periodic VHF goes above 0.3 and the slope of the 21 linear regression Periodically positive.
Close a long position when the VHF goes below 0.7 or a negative slope.
Open a short position when the VHF goes above 0.3 and the slope is negative.
Close the short position, when the VHF goes below 0.7 or a positive slope.
Characteristics of transactions
The system offers VHF bargain about once in every three months. Transactions are usually closed after about two to four weeks. The system is in the sale of approximately 50% -60% of the time.
Further reading
Futures magazine, August 1991
Breakthrough volatility (Chaikin)
Description
The system uses a breakthrough volatility indicator of volatility created by Marc Chaikin to determine very short periods of increasing volatility. Typically, transactions on the system are kept only for one or two days. The system tracks the increase in volatility of the securities and then opens up a bargain in the direction of prices. Out of position is carried out or where the prices are starting to move in the opposite direction, or when the volatility is reduced (warning of the potential change of direction).
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open a long position when the ratio of 10 periods / 10 periods of rate of change indicator Chaikin volatility increases, and price increases.
Close long positions when volatility is reduced, and the price goes down.
Open a short position, when volatility increases, and the price goes down.
Close the short position, when the volatility is reduced, and the price rises.
Characteristics of transactions
The system offers a breakthrough volatility transaction approximately every two to four days, which makes it suitable for very short-term traders. The system is in the sale of approximately half the time.
Traders Magazine
BULLBEAR.RU
Content
Introduction
Welcome
For whom is this manual?
How to Use this Guide
Getting Help
Chapter One - What is technical analysis?
Introduction
Fundamentals of technical analysis
Chapter Two - Introduction to MetaStock and MetaStock Performance Systems Systems
Introduction
MetaStock
High system MetaStock Performance Systems
What system should I use?
Comparison of tests of
Chapter Three - Using tools MetaStock Power Tools
Introduction
Opening Graphics
Custom Indicators
Advanced Systems Tester
Researcher
Expert Advisor
Basic Principles of Trade
Disclaimer
Chapter Four - Description of MetaStock Performance Systems
Introduction
Systems
Adaptive Moving Average
Bull / bear force 1
Bull / bear force 2
Bull / bear force 3
CCI (commodity channel index)
Predskazuyuschy Oscillator Chande
Turn CMO
Breakthrough of the consolidation
Model Cooper 1234
Cycle progression
Dynamic Momentum Index 1
Exponential Moving Average
Fractal trading systems 1 and 2
Sales of long positions, then a short sale - 5 days
MACD Charts 1 and 2
Perekuplennost / pereprodannost Mayzelsa
Sinus wave MESA
The system of trade pattern 1
Percentage crossing 3%
Projected oscillator 1
StochRSI
Index fluctuations
Vertical horizontal filter breakthrough volatility (Chaikin)
Introduction
Welcome
Your emotions hinder trade? Would you like to enhance their trading style of discipline? Would you like to automate their investment activities, using an embedded set of proven strategies to trade? And what you say about the guide, which explains all this in easy to understand format? It is intended for the MetaStock ®, MetaStock Performance Systems ™ and the guide.
We will show you how to quickly and easily using the most powerful functionality of MetaStock - Tools Power Tools. We also will introduce you to 26 out of 80 high-performance systems, MetaStock Performance Systems - collection of the best trading systems ever developed for MetaStock.
The core of this guide is a step-by-step instruction on how to use high-performance system MetaStock to find the best options for investment. This guide shows you step by step how to use each tool MetaStock Power Tools, to help in the selection of systems and transactions. You understand and begin to use trading systems almost lightning speed.
We take your time, only the most necessary for the start of trading instructions. This guide is not a complete guide to MetaStock (it can be retrieved using the background menu MetaStock Help). This is not a guide to the basics of MetaStock (see QuickStart training examples in the Help menu, MetaStock Help). This is not a course on how to trade. Yes and no thorough overview of technical analysis. This guide is a quick and easy way to feel the force of MetaStock. Where necessary, for additional information, you will be sent to other reference material.
For whom is this manual?
If you are familiar with the implementation of basic tasks in the MetaStock, this guide is for you. Under the basic tasks means opening schedules, creating files of securities, downloading data, the construction of indicators and driving tests and research systems. If you are not familiar with any of these problems, we strongly recommend that you read the Book «The first steps in MetaStock» before you start reading this material.
How to Use this Guide
Chapter One of this guide acquaints you with the technical analysis and describes the principal methods used in MetaStock to help you make better investment decisions. Later in this tutorial we will familiarize you with improved techniques and general understanding of technical analysis is very help.
In the second chapter explains what is unique and efficient system MetaStock MetaStock Performance Systems, and what they can do to improve your trading. This chapter also describes two approaches to the use of high-performance systems, MetaStock so that you can choose the most appropriate for your system.
Chapter three is a step-by-step tutorial for each of the tools MetaStock Power Tools, together with high system MetaStock Performance Systems. Here you will learn how to manage the true power of MetaStock.
Chapter four contains a description of each of the high-performance systems, MetaStock, and you can choose the one that best corresponds to the style of your trade.
At the left margin of this guide contains references to the file reference support MetaStock. The key word for search is allocated with a bold (as in the example on the left). To see your keyword, select the Help menu in MetaStock Help, and click on the Index. Then type in a keyword in the input data at the top of the dialogue.
Rather paragraph: Help MetaStock - keyword
Rather paragraph: Definitions of new terms are in the fields.
When the new terminology is the first time, its definition is printed in the margin.
Getting Help
If you have problems or questions, first of all refer to the system reference assistance MetaStock. It contains all that is in the printed version of the manual. In support, you'll find answers to most questions.
Each dialog has a button aid, which displays help for this dialog. Or you can click on the icon context-sensitive help, and then click on any point in the dialogues MetaStock, to get help on that item.
Rather paragraph: (a picture): The icon context-sensitive help
If you have searched through the system, but could not find a solution to your problem or answer to your question, please contact to obtain assistance from the seller, from whom you purchased MetaStock. If you bought directly from MetaStock Equis, you can to get help for MetaStock, contact technical support Equis. For information on how to contact technical support Equis Technical Support, written in the Technical Support section of Help MetaStock.
Rather paragraph: Help MetaStock - Technical Support
Chapter One - What is technical analysis?
Introduction
For some people, the technical analysis is something of a mystical art, divination related to the thick coffee. For others it is a valuable tool to increase the investment success while reducing risk.
Simply put, technical analysis is the study of past price and volume of trading in securities for the purpose of predicting the future. Technical analysis deals only with elements of the price (open, maximum, minimum, and closing) and the volume associated with the security, and ignores other factors such as profit, revenue growth, etc. Technical analysis can be applied to almost any investment instruments, including stocks, futures, options and mutual funds.
On the paragraph: The term security refers to shares, bonds, mutual funds, exchange goods, currencies, futures, indices, options, etc.
This chapter describes what is technical analysis, and why you should use it, and also introduces you to some basic concepts of technical analysis.
Why use technical analysis?
When using technical analysis can increase the profit from your investment while reducing your risk. Would you buy an old car, not knowing anything about his past history? Similarly, you should not buy a stock, do not know how to behave its prices in the past.
Technical analysis protects you from the biggest enemy of your investment success - your own. The use of a mechanical trading system removes emotions from trading. It makes you more disciplined trader. It eliminates the possibility that you zapanikuete in the most inopportune moment.
Fundamentals of technical analysis
This is a very simplified introduction to the basics of technical analysis. For more information on technical analysis can be found in the excellent book creator Steve MetaStock Achelisa (Steve Achelis) «Technical Analysis from A to Z» (Technical Analysis from A to Z.
Graphs
The underlying concept of technical analysis is the schedule. This is where technical analysis of the case. The chart shows in graphic form, the history of the trading of the securities. The most common schedule of technical analysis is a «bar graph». Bar shows the opening price, the maximum, minimum, and closing during the period. Consider, for example, the following illustration. The volume is usually displayed below the price bars.
Rather paragraph: Open - the first price auction over the period.
Maximum - the highest price bid that took place during the period.
Minimum - the lowest bid price that occurred during the period.
The closure - the last price of trades during the period.
Volume - the number of shares purchased / sold during the period.
Period - a period of one bar (eg, minute, hour, day, week, month).
Axis X - the scale of dates along the schedule.
Axis Y - the scale of prices along the side graphics.
The base graphics (also called the axis X) indicates the date. On the right side of the graph (also called the axis of Y) are shown in the price.
Bar graph is the most commonly accepted type of schedule, but in MetaStock are also other forms of graphs. For example, you can build a closing price of the line. It is also a good schedule, if you want to just throw a quick glance at the general behavior of prices over a long period.
Support and resistance
The prices of securities represent the balance between buyers and sellers. When the price falls to a point where buyers are much more than sellers, prices stop falling, and you get the level of support. When prices are rising to the point where the market is a lot of sellers, prices stop rising, and you get the level of resistance.
The following illustration shows MedImmune and the level of support at U.S. $ 44
When the action moves between the support and resistance, their behavior is called the «cyclic». Indicators developed for such behavior can also be referred to as cyclical indicators, or indicators perekuplennosti / pereprodannosti or turn indicators. Cyclical indicators work best when the shares are trading corridor. The most well-known cyclical indicator is probably the stochastic oscillator (Stochastic Oscillator). More information on indicators is written on page 6.
On the paragraph: Perekuplennaya (overbought) security risen to excessive levels, and it is correct. Resold to (oversold) security is its antithesis.
Trade Corridor, or the range of (trading range) is a lateral movement of prices on the graph and is often a period of respite before prices resume their previous trend.
In trading on the levels of support and resistance levels are encouraged to wait for confirmation, rather than trying to anticipate the prices. In other words, wait until prices fall to support and not otskochat it (confirmation) before opening a long transaction, and vice versa for short transactions.
Trends
The opposite action, caught between support and resistance is the trend in action. Ascending trend is defined as more and more high minimums. Top-down trend is defined as more and more low records. The old adage «Trend - your friend» - is absolutely true. The following illustration shows a remarkable upward trend in Washington Mutual, once the price overflows the level of resistance.
Rather paragraph: Ascending trend (up-trend) is an increasingly high minimum bids.
Top-down trend (down-trend) is an increasing and lower maximum prices.
The indicators that follow the trend, you can also call «weaker» indicators, because their signals are not kept pace with price changes. The best way they work when securities move in a long-term trends. The most common indicator, following the trend is moving average (moving average).
Indicators
The indicator is simply a mathematical calculation applied to some or all the price fields and / or volume. LEDs can be built on schedule, providing thus a graphical representation of these calculations. Many of the high-performance systems, MetaStock Performance Systems are used in their calculations of the indicators (system, not using indicators, using the price figures).
Rather paragraph: Pricing figure (price pattern) is recognized by the price formation, which is expected to continue or change the trend.
Moving Average
One of the most common indicator is the moving average. Moving Average shows the average price for which the securities traded during the period of time. For example, a 5-day moving average is calculated by summing the closing prices over the past five days and dividing this amount by five, the average number is obtained. This moving average is called «easy» moving average, because it gives equal weight to each period. MetaStock includes six other versions of the rolling average, distributing the weight in different ways.
Rather paragraph: Moving average (moving average) is the average price at which securities traded during the period of time.
Moving Average represents the average price that investors were willing to pay per share for a specified period of time. This gives you a view of the crowd. The following illustration shows Microsoft and 25-day moving average. Please note that the purchase or sale price of the crossing points in the moving average is belated, but profitable entry points.
Rather paragraph: Help MetaStock - Moving Average
Moving averages are lagging indicators. Made of the signals appear after the price has changed its direction. On the other hand, the moving average is always ultimately take you to the right side of trend. Moving averages are best suited for securities that have strong trends.
Stochastic oscillator
Another popular indicator is the Stochastic oscillator. «Stochastics», as they are sometimes called, shows where the traded price on the recent range between maximum and minimum. For example, desyatiperiodichny Stochastics is the highest and the lowest price in the last ten days and see where in this range is the current price. The value 100 would indicate that the Stochastics are at the top (or 100%) 10-day range between the maximum and minimum, a value of 0 indicates that it is based on the range. The following illustration shows the Intel and the stochastic oscillator.
Rather paragraph: Stochastic oscillator (Stochastic Oscillator) calculates the price of relatively recent range between maximum and minimum.
Help MetaStock - Stochastic Oscillator
Stochastic Oscillator is an indicator perekuplennosti / pereprodannosti. In other words, he tries to anticipate Facing prices. Usually it is interpreted is open long position when the Stochastics turns up out of the territory pereprodannosti (ie, crosses the line 20 towards the top) and the opening short position, when the Stochastics falls below perekuplennosti territory (ie, falls below 80). Stochastic oscillator works best with securities, which are cyclical, or bestrendovoe, behavior. Stochastics are based on the principles and many other indicators.
Other indicators
MetaStock includes more than 120 other technical indicators of accumulation / Distribution (Accumulation / Distribution) and zigzag (Zig Zag). MetaStock also includes more than 100 mathematical, statistical, temporal, and other functions that can be embedded in your own technical indicators. You can experiment with any of their number, if you have at this time. Most investors are a couple of indicators that work for them and their hold. We hope that the system MetaStock Performance Systems will be able to lead you to a couple of indicators that will work for you.
Chapter Two - Introduction to MetaStock and MetaStock Performance Systems Systems
Introduction
Technical analysis is a powerful tool, but to get maximum benefit from it, let most of the work to the computer. MetaStock and high-performance system MetaStock Performance Systems do for you all the dirty work, allowing you to spend your time more productively.
This section gives a brief overview of each tool and MetaStock Power Tool. This section also brings you the highly productive systems, MetaStock Performance Systems, and help you choose a system that is best for you.
MetaStock
MetaStock provides all the tools necessary for developing, testing and deployment of advanced trading systems based on technical analysis.
Tools MetaStock Power Tools include the researcher Explorer ™, designed for the detection of securities related to certain conditions, the Advanced Systems Tester Enhanced System Tester ™, designed to test trading systems to see how profitable would be your ideas in the past, the builder of the indicators Indicator Builder designed to create your own indicators and expert advisers Expert Advisor ™ to introduce a custom comment, highlight bars, symbols and signals.
Researcher
Explorer is a powerful multi-purpose tool of analysis, which can perform deep «research» (also known as «scanning») of thousands of securities at the same time. He can compare, rank, sort and filter securities; to bring together many of the values of indicators for many securities; show securities to current signals buying and selling, and searching for any technical criteria set by the trader. Results can be saved for the future in the form of lists that provide convenient access.
Rather paragraph: Help MetaStock - What is research?
Advanced Systems Tester
Advanced Systems Tester allows users to create and experience the historical data of trade. The user sets the conditions for entry and exit, the amount of commissions and other important details. Then, an improved test system is the criteria on the real securities, to see how much money could be made or lost, using this system in a given period of time. Advanced Systems Tester can also optimize each system so as to find the parameters that work best for a particular security, and compare a lot of systems to show which of them is the most profitable. These tools allow traders to optimize their chances of making a profit on the market - without risking a single cent of real money.
Rather paragraph: Help MetaStock - What is the testing of the system?
Construction indicators
In MetaStock is a powerful indicator builder, which allows users to easily create their own indicators, using more than 200 built-in MetaStock mathematical, statistical and technical functions. Indicators MetaStock also supports variables, multiple charting and user input.
Rather paragraph: Help MetaStock - What is the construction of indicators?
Expert Advisor
Expert Advisor MetaStock works as a basic tool for learning, and as a powerful means to automate trading systems, regardless of their degree of perfection. The experts include buying and selling signals, warnings and a written comment. Users can also create their own experts to the automation system of signals, warnings, and so on.
Rather paragraph: Help MetaStock - What is an Expert Advisor?
High system MetaStock Performance Systems
High system MetaStock Performance Systems are a set of 80 most productive system ever developed for MetaStock. Twenty-six of these systems come with MetaStock free, while the remaining 54 are available through the purchase of additional product MetaStock Performance Systems Plus.
Each system has MetaStock related test systems, the study of signal, the study of productivity and an expert adviser. Some of the research productivity associated with 26 free systems are offered only for the money. The description of each of the 26 free systems is in the fourth chapter of this guide, including information on whether a study of productivity in the MetaStock or package must be purchased in addition to the MetaStock Performance Systems Plus.
As selected by the system MetaStock Performance Systems
High system MetaStock Performance Systems, developed by Trading Systems Analysis Group, were selected by testing for the daytime data of many options for hundreds of different systems, which generally amounted to approximately 10 000 different combinations. Tests were conducted on the day these shares without any delay of transactions, with input and output at the closing. Commissions during the test is not calculated. Stop is not used, because the systems have their own signs out, rather quickly closing the deal. Cheap and low traded stocks in the test were not included. The system recognized the fit, if its trade efficiency (detailed on page 35) provided a positive for more than 50% of the analyzed stocks.
Rather paragraph: Stop is an order to sell a long position or cover a short position at a predetermined level, usually in order to limit losses.
What system should I use?
There are two approaches to tools MetaStock Performance Systems. You can choose the action you want to sell, then find a system that works best with these shares.
Or, you can choose the system that you would like to use, and then find stocks that are best to trade with them. You can use the advanced tester of systems to compare the performance of the system at all events in your chosen database, or even online. Shares may be measured by profits, the percentage increase, and other criteria, then you can choose what to sell.
Then explains both approaches. You decide which one suits you best.
Comparison of tests of
Select an action or actions that you want to sell, by any criteria that you find fitting. You can choose to share, which is a lot you know. If you are going to open only long positions, you should probably choose the action that you think has good long-term prospects.
We will compare the performance of different systems for different activities, using advanced systems tester. For more information on the use of advanced test systems, see the step-by-step guidance on the use of advanced test systems on page 25.
The testing of a system at several events
Suppose that you have chosen the system you want to use, and simply want to find an action whose nature corresponds to this system. Perhaps after reading the descriptions in the fourth chapter, you have decided that the system is best suitable to your style of trading, the trading system by pattern 1 (Pattern Trading System 1). It is based on the bull's premise and traded every week or two, so you decide to try and see what will turn out. In the next example we'll show you how to choose an action for trade using the trading system on the pattern 1.
1. Click the Advanced Systems Tester.
2. Click a new conversation model New Simulation. A selection screen of Select Systems.
3. Scroll down and select PS Pattern Trading System 1.
4. Click Next. A screen of choice Security Select Securities.
5. Click the Add Securities. A dialog appears adding securities Add Securities.
6. Double-click a folder under the name «Stocks-Common», then double-click on the folder called «S & P 100.»
7. Click Tools, then click Select All.
8. Ensure that the frequency of a daily regime Daily (in the lower left corner) and click Open.
9. Returning to the screen Select Securities, click Dates. A dialogue dates Modeling Simulation Dates.
10. Select the «Use price data from», and enter in the field of «from» 6/30/2000 in the field «to» 7/1/2002.
11. Click OK.
12. Click Next. The Setup screen appears Testing Systems System Testing Options.
Set test at the same as those that are shown above.
13. Click More, to open the setup dialog testing systems and select a bookmark the execution of transactions Trade Execution. Check realistic market prices Realistic Market Prices.
14. Click Next. A screen simulation of the early bidding Begin Trading Simulation.
15. Type «PTS1» in the upper field (where is written «The System Tester will now perform the simulation» - «now begin modeling tool systems»).
16. Click Start. In the lower right corner of the screen, a window state.
17. When the simulation is completed, click on the button view results View Results.
Opens a window viewing the results of the test Test View. Click on the column heading net profit «Net Profit». It is located the results so that the most effective action would be top of the list.
The two best are from us (on net profit) General Dymanics and Schlumburger. But net profit - only part of the picture. Let us examine more closely how well these securities trading system for pattern 1.
18. Double-click on the General Dynamics in the list of results (bottom half of the screen). A Final Report Summary Report.
19. Look at the section of productivity Performance (second from top left) and note the position of the profit from the purchase and retention of Buy & Hold Profit. She was only 5 to $ 236.25 and the system of trade pattern yielded a profit of U.S. $ 5,636.25, or $ 400 more. This is a good sign.
20. Now click on the tab Capital Equity, to view a report on the movement of capital Equity Report.
Liniya assets increased steadily, without any extraordinary leaps. This suggests that the system is relatively stable and reliable.
21. Now click Back and repeat steps 18 - 20 for Schlumberger.
You will find that the testing Schlumberger net income exceeds the income from buying and holding, but its line assets less stable than those of General Dynamics. Therefore, two securities that have the highest net profit from trading system to pattern 1, General Dynamics, probably is the best candidate. If you decide to use this valuable paper to the test, you must attach a schedule to the General Dynamics expert trading system for the template and every day to check, does not issue whether it signals the purchase and sale.
Testing of several systems on one share
1. Run the advanced test systems so that we can perform testing on historical data (for more information on advanced tool systems, see page 10).
2. We want to try on our stock, all 26 high-performance systems, MetaStock, to see which one is better suited. To select all of the system, click on the list of systems on the first system of PS, followed by pressing and holding shift, click on the last in the list of the system PS.
3. Click the new model New Simulation, to activate the master simulation bidding.
4. Click the wizard, click Next.
5. Click the Add Securities. A dialog appears adding securities Add Securities.
6. Make sure the button Online Vendor is selected and double-click on the folder Stocks-Common, to open it (if you have not already done so).
7. Click Options and select View by Name.
8. Type Amgen in the ticker symbol Symbol.
9. Set the frequency to daily treatment daily (in the lower left corner) and click Open. You return to the master.
10. Click Dates.
11. Select price range use «Use price data from __ to __», and enter as the first date of 6/27/2001, and as the last date of 6/28/2002.
12. Click OK.
13. Click Next. In the wizard dialog settings, testing systems, System Testing Options.
14. Select testing only points Points Only Test. Make sure that the other option settings dialog testing systems comply with the following illustration.
15. Click More, to open the setup dialog testing systems, and click on the tab transaction Trade Execution.
16. Turn off the option of realistic market prices Realistic Market Prices.
17. Set the price of buying Buy Price and Sell Price of sale price at closing, Close.
18. Click OK.
19. Click Next. A dialogue began modeling bidding Begin Trading Simulation. In the top ( «The System Tester will now perform ...») type« My modeling ». (Without the quotes.)
20. Click Start.
21. When the simulation is completed, click on the button view results View Results.
22. Opens a window viewing the results of the test Test View, showing all the systems and their performance on the profits and other criteria.
23. Click once on the column net profit Net Profit, to sort of in ascending order and twice to sort them in descending order (ie, better results would be on top).
In this example, net income represents the items as we test only for points. The report shows that the best results shows the system cycle progression PS Cycle Progression, bringing in profits during the year in 39.93 paragraph (column net profit «Net Profit»). Following is the system bull / bear forces PS Bull Power Bear Power with net profit of 31.79 points.
If we look at the total number of transactions (column entitled «Trades»), we see that the PS Bull Power Bear Power had only 15 deals. PS Cycle Progression had 48 deals, three times more than the PS Cycle Regression. All other things being equal, we would have preferred a system with fewer transactions. Fewer transactions means lower commission paid to the broker.
24. Double-click PS Bull Power Bear Power, to open a window view results Result Details View.
25. Click charting Plot on Chart, so that we can see in the graphic representation of a line of capital (the line represents the capital gain of our system). Close advanced test systems to see a line of capital, based on the accompanying chart.
Line of capital throughout the year shows a relatively stable upward trend. This is what we want. It seems that PS Bull Power Bear Power Amgen suitable for those dates.
Now all that we have to do is to attach an expert PS Bull Power Bear Power, and every day to check the schedule for the availability of signals. Alerts experts tell us about the appearance of any signals since the last time, when we opened our schedule, and expert commentary will describe the details relating to each received signal.
Now we have done everything possible to reduce our risk. We found a system that performed well in tests on historical data shares, which we well know. The system matches our business identity, and we understand the theory of the indicator. We are going to invest in each transaction, only a small fraction of the money that we can afford to lose. We have removed the emotional factor as far as possible. We are ready to sell.
This completes our story on the selection of shares and to trade. Remember the following points:
• Load data for a reliable test.
• Choose a system that exceeds the investment type «Buy-and-hold».
• Choose steadily moving up through the capital.
• Limit the risk.
Chapter Three - Using tools MetaStock Power Tools
Introduction
Now that you know how high-performance systems and MetaStock MetaStock Performance Systems can improve your trade, we'll show you step by step how to use each of the additional methods MetaStock - tools Power Tools. It is in these instruments is the true power of MetaStock. If you use only for the MetaStock charting price and chart of trend lines, it is like to buy posh car, then simply climb in and sit on the sidelines. If you want your transaction has a powerful technical analysis, use the powerful tools Power Tools! In our example we will use the system pyatiperiodichnuyu «selling long positions, then a short sale» - Long Sell Short Sale-5 day (LSS).
Where to find tools MetaStock Performance System
Tools of MetaStock Performance Systems are built into MetaStock. All the tools of MetaStock Performance Systems begin with the abbreviation «PS». For example, a study to find the stocks that show signs of purchase or sale of the adaptive system of moving averages is called «PS Adaptive Moving Average (Signal).»
Rather paragraph: Tools MetaStock Performance Systems begin with «PS».
Not all of MetaStock Performance Systems are equipped with customized indicators. Many systems are used for calculations only those indicators that are already built into MetaStock. Some of the research productivity, the system for MetaStock Performance Systems, available separately through the acquisition of embedded package MetaStock Performance Systems Plus. Pay attention to the description in the fourth chapter to figure out what exactly comes with each system.
The choice of time period
How many times should you download? This is a more important issue than it might seem. You need to download enough data to get a good understanding of the long-term trend. Two or three years is usually sufficient. If you want to be a long-term investment, you may need an even deeper dive into the past. Regardless of what time period you choose, you must maintain consistency with each instrument. If you download the 500 periods in the schedule, download as 500 periods, and in your research. If the time period of your studies will be different, the results may not meet the test of your system.
Opening Graphics
Before we can use any of the tools, let's open schedule. If you know what security you want to trade, to open its schedule. We are in our example, we use Exxon Mobil.
1. Click on the icon, open the file, or select Open to open the menu File.
Rather paragraph: Help MetaStock - Opening Dialogue
(picture) icon for opening file
Label your data.
Type here the name or symbol of your security.
2. Choose Load Options from the menu to open the Options dialog Open. Enter the number of periods that you would like to see in the chart. Or, if you so prefer, select the dates of the request at the opening graphics Prompt for dates when chart is opened, if for each graphic you want to choose their times or dates. We use this option for our example. Regardless of which choice you make, he will be appointed by default for all graphs. Click OK.
3. Select the folder containing the valuable paper, you want to open. If you are using the data online using DataOnDemand ™, click on the toolbar of your label data. If you are using local data, select the icon labeled Local Data Local Data, and then specify the path to the appropriate folder. We choose the label of your data.
Rather paragraph: Help MetaStock - DataOnDemand
Access to the data online via the Internet or other online resource.
Local data is stored on your hard disk.
4. To open the calendar, type in the box «Symbol» Symbol of the security that you want to consider, and then press enter Enter. We know the name of our security, so in the Options menu to select the option to display the names of View by Name, then enter the text «Exxon Mobil» in the «Security Name». Or, if you see his valuable paper in the list, you can simply click on it twice to open the schedule.
5. If you choose option «Prompt for dates when chart is opened» to download options dialog Load Options, the following dialog box appears. Enter the number of periods or download a specific date in the past. We enter the date, separated in the past 20 years, so you can see the long-term trend. Click OK.
6. You will see the following schedule:
Now we see that the mean, saying «the trend - your friend»! Almost all of 20 years, Exxon stubbornly crept up. This is the trend, which you should take part.
We have determined that long-term trend is positive, but we do not need to use the tools on data for 20 years. The more data you load, the longer it takes each calculation. Close this schedule, and open a new download only the 1000 period (approximately four years) of data. Now we are ready to use advanced features MetaStock - Tools Power Tools.
Custom Indicators
Construction of indicators allows you to build your own custom indicators to develop or introduce the indicators that you can find in any magazine or website. Many of the high-performance systems, MetaStock Performance Systems are used in their calculations of the custom indicators. These indicators are included in MetaStock, so you can see how these indicators are on the schedule. They are presented for reference only, and you do not have to use them in its analysis.
Rather paragraph: Help MetaStock - Building a custom indicator
Building a custom indicator
Configurable indicators for MetaStock Performance Systems are created using a list of indicators Indicator QuickList on the Standard toolbar.
1. Click on a list of indicators Indicator QuickList on the toolbar and scroll down until the indicator «PS Long Sell Short Sale-5 day». (This indicator appears in the second alphabetical list at the bottom of the list QuickList.)
2. Place your mouse pointer on the small icon on the left of the indicator. Please note that the mouse pointer will turn into a palm.
3. Click and do not release the left mouse button and pull the indicator, while it will not be on any header graphics. Please note that the cursor changes again when the top is the header field.
4. Build indicator, release the mouse button. The following illustration shows how the indicator looks at the chart.
Advanced Systems Tester
All 26 high-performance systems, MetaStock Performance Systems include the test system, supplied with MetaStock free. Advanced Systems Tester allows you to test the trading system on historical data, thereby determining its past returns. Past results of the work does not guarantee future results, but as you learned in the first chapter, stocks tend to follow trends or patterns that may help predict the future. Advanced Systems Tester can show you how profitable would have been one or the other system in the past, so you can decide how risky the transaction may be coming. If the system has not worked well in the past, you should not risk their money in the future.
Rather paragraph (a picture): advanced tool icon Systems
Advanced Systems Tester should be used to obtain current trading signals. To find out whether not generated any signal current data, attach to its expert system (see page 38).
1. Select the Advanced Systems Tester from the Tools menu Tools, or click on the icon of improved test systems.
On the picture (a picture): advanced tool icon Systems
2. Scroll down the list of (left panel) and select the system PS Long Sell Short Sale-5 day (LSS).
3. Click the new model New Simulation (bottom of the screen improved tester systems). A master model.
4. The first master of the dialogue is the dialogue choice of Select Systems. Check it «PS Long Sell Short Sale 5 Day».
5. Click Next. A selection dialog securities Select Securities.
6. Click Add Securities. A dialog appears adding securities Add Securities, where you can choose any number of securities that are available locally or online.
7. Type in XOM in the Symbol. (XOM is a symbol of Exxon Mobil.)
8. Click Open.
9. Returning to the dialogue choice of securities, click Dates. A dialog appears dates Modeling Simulation Dates.
10. Select use of price data for the last specified number of periods available «Use price data from the last __ available periods», and enter 500.
11. Click OK.
12. Click Next. A dialogue choices Testing Systems System Testing Options.
Run a test system, you might consider it their specific trading arrangements, such as the size of seed capital, fees and margins. To obtain an accurate calculation of the last profit settings testing systems must be installed so as to conform as closely as possible how you would be traded on the system. To get a general idea of how well the system works in action, you can run a basic test, without any special settings. Then, if the system was profitable, you can choose your specific options to obtain more accurate estimation.
13. In the trading Trading on the top of the dialog, select test points in the «Points only test.»
14. In Portfolio Portfolio section in the center of the dialogue select long positions «Long.»
15. Click Next. A dialogue began modeling bidding Begin Trading Simulation.
16. Type «LSS» in the field under the words «The System Tester will now perform the simulation» (Now tester systems carry out simulation).
17. Click Start. The master of performance test systems close and provide a small window that shows you information on the progress of simulation. In addition, the progress test shows a blue line next to a dollar sign in the lower right corner of the working area of MetaStock.
18. After completing the test, click the button on the submission of the results View Results.
Results of tests
After you run the test, view results, click View Results. Note that the View Results button disappears after about thirty seconds, if you do not click on it. When she disappeared, the return to the Advanced Systems Tester and click on the folder system «All Systems» top of the list of Systems List (left section), and then double-click on the «LSS» in the list of simulations trades Trading Simulations List (bottom right section). This will open the Final Report Summary Report on-screen viewing of results Result Details View.
Keep in mind that your results may vary from shown here. But the basic concepts are equally applicable.
The final report shows (among other things) the profit growth in percentage, the total number of transactions and the number of winning and losing deals. In our case the profit amounted to 30.1437 points, with 58 transactions. Scroll down a bit, and you will see that 43 transactions were profitable, and 15 - are unprofitable.
Our overall net income of $ 30.1437 is very favorable compared to a profit in the strategy «Buy-and-hold», equal to 4.2850. Scroll down the dialogue a final report, we see that the average winning trade was equal to 1.1183, paragraph, or U.S. $ 111.83, if you sell 100 shares. There were 43 winning transaction, an average of six days each. Losing the deal were slightly higher on average 1.1961, paragraph, or 119.61 dollars for 100 shares, but Losing transactions was only 15. They lasted on average for fifteen days.
The dialog system report System Report has 4 other tabs:
• Bookmark orders Orders contain detailed information on each order, tracked system.
Bookmark • positions Positions contains detailed information on each position, which is open during the test.
• Bookmark the assets of Equity shows the daily change in the capital.
• System tab shows the system for this system, as well as foot and customize testing.
The arrows and a line of capital
When considering the Final Report Summary Report, click on the button charting Plot on Chart, and then close the Advanced Systems Tester. A schedule of the securities in which you'll see a line of movement of capital and the arrow signals the purchase and sale. The most desirable line of capital is that which is good steady ascending trend. Less desirable is rising, but the checkered line, and worst of all, obviously, would be a declining line. In our example we have a wonderful line of capital (in the upper window). It was so many transactions that the arrow «buying» difficult to discern.
Cleaning schedule
Before you continue, you should remove from your schedule of all the unwanted signals of buying and selling.
1. Select the total removal Delete All from the menu Edit Edit.
2. Mark the position of Symbols in the dialogue overall removal Delete All. All other options should be selected.
3. Click OK.
Researcher
All 26 high-performance systems, MetaStock Performance Systems include the study of signals that are included with MetaStock free. Ten systems include also provided with MetaStock free research productivity. The research productivity for the remaining 16 systems are supplied with a separate set of MetaStock Performance Systems Plus plug-in.
Rather paragraph: Help MetaStock - Dialog Explorer
Rather paragraph: Help MetaStock - cache-line of local securities
The study is looking for signals of shares, issuing buy or sell signals. Investigation of performance similar to testing the system. It shows the performance of the system on a strategy «Buy-and-hold».
The researcher works with online and local data, but faster in operation with local data.
Choosing shares
What actions should you include in your study? It depends on your system. Short-term system picked up a very small movement would best work with the biggest, most liquid stocks. Good examples of this type of shares are shares of S & P 100, so we'll use for our example, S & P 100. Long-term system, designed to catch more traffic, could be applied to a broader base of the shares, for example, S & P 500, or even the entire set of American shares available on CD-ROM Data MetaStock Data CD. Try to study performance in different events and see what kind of action shows the best results. You can filter out stocks that are not suitable for the price, volume or other criteria (see page 36).
Setting preferences study
To obtain reliable results when carrying out research, you should download at least 500 records. A large number of records will require more time for calculations, so do not be surprised if the 20-year scan will take several hours.
Rather paragraph: Help MetaStock - Setting Research
Rather paragraph (a picture): An icon explorer
Do not forget that the number of entries must be equal to the number of time periods that you load in the graphics, otherwise the results would not be suitable for advanced testing systems.
1. Select a researcher The Explorer On the Tools menu, Tools, or click on the icon of the researcher.
2. Click Settings in the Options dialog researcher.
3. Enter the number of records to load. For our example we enter 1000 records (approximately 4 years).
4. Click OK.
Follow-up studies
First, we will study productivity. Investigation of performance tells us how the system works for a group of shares, compared with a strategy «Buy-and-hold». We can get an idea of how well our system LSS with other actions, in addition to Exxon Mobile.
1. Select the study «PS Long Sell Short Sale-5 Day (Perf)».
2. Click Studies Explore.
3. A selection dialog securities Select Securities.
4. Click the Add Securities ... A dialog appears adding securities Add Securities.
5. Double-click a folder under the name «Stocks-Co ...», then double-click on the folder called« S & P 100 ».
6. Click tools Tools, then click Select All.
7. Click Open.
8. Click OK to begin the study.
9. After completion of the study, click on the Reports button in the dialog reports the completion of the study Exploration Completed, to get a full report on the results.
The results of the research productivity
Dialogue Report Research Exploration Report is the top three bookmarks - the results Results, bounce Rejects research and Exploration. In the bounce show all securities that have been rejected by the filter study, as well as the reasons. Window Settings study shows that have been used in the study. In the results show the following columns.
Rather paragraph: Help MetaStock - Report on the results
• L Point - the number of points won per share in long transaction during a specified time period.
• S Point - the number of points won per share in short transactions in a given period of time.
• LS Point - the total number of points won per share in the short and long transactions over a given period of time.
On the paragraph: The efficiency measures the transaction performance of the system on a strategy «Buy-and-hold».
• L Perf - performance long transactions, expressed as the efficiency of transactions.
• S Perf - the performance of short transactions, expressed as the efficiency of transactions.
• LS Perf - performance of all transactions, as expressed through the efficiency of transactions.
Please note that the items - this is not the same as interest. If the system wins, say, 5 points, which means earnings per share of $ 5 dollars, which could be either way from 10 to 15 U.S. dollars, and the movement of up to $ 100 to $ 105 if you sell 100 shares 5 points means a profit of $ 500
By default, results are sorted by the name of security. The best performing emerging top of the list. We sort by the column «L Perf», because we use only long positions, and we want to know how well our system in comparison with the strategy «Buy-and-hold». To sort the list by the column «L Perf», we click on the column heading. Single-click allows sorting in ascending order, so we click once more to entrust sort in descending order.
To get an idea of how the system works for all the shares, scroll down (using a scroll bar right) until you see in the column «L Perf» negative value. In this example, this occurs after about 3 / 4 of the list, which tells us that the system has proved better strategy «Buy-and-hold» to about 3 / 4 of the securities included in the S & P 100. This is an excellent result.
You can get more information about the study through the buttons to the right:
• Inspect button allows you to see results every day.
• Open Chart button to open the selected schedule or schedules.
• Sort button lets you sort three different columns.
• Print button prints the results.
• Save List button will save the securities to the list. This list can then be used as a source for later studies.
The effectiveness of the transaction
The main issue is the process of testing the effectiveness of the transaction. If the profit of the transaction for the day exceeds the profit for the day when the strategy «Buy-and-hold», the system will have a positive efficiency of the transaction. For example, if the system was used during 250 of 1 000 possible days and won 250 points, she made $ 1 per share per day. If the strategy «Buy-and-hold» for the same 1 000 days, won 250 points, meaning that she earned only 25 cents per share on the day, therefore, the efficiency will be equal to 0.75 (1.00 minus 0.25 ), although both systems have won the same absolute amount. The point is that the system received the same income for 25% of the time it took for the strategy «Buy-and-hold», it means that your money was in 75% of the time available for other transactions. Positive transaction efficiency does not imply that the system was profitable, it means that the system has surpassed the results obtained for the purchase and holding of that security.
The results of the research signals
To implement the study a signal, follow the instructions set out above in the section «Study», but go to the study «PS Long Sell Short Sale-5 Day (Signal)».
The module studies the signals show a list of all securities issued in the current bar signal buy or sell.
The report studies the signals are shown following columns:
• Longs - displays 1, if a condition for opening a long position, otherwise 0.
• Shorts - it displays 1, if a condition for the opening short position, otherwise 0.
If you study the signals brings too many results, add additional filters (see next section). Follow-up studies of signals for LSS provides us with the following results:
It was 12 of possible purchases, and two possibilities for the short sale. Add another filter to reduce the number of shares.
Adding an additional filter
For systems, making too many results, you can use additional filters, such as the restriction on price or volume. For the purposes of our example, we sell only the very large and liquid stocks. Therefore, we add a filter, which requires that the average volume of trades during the 50-day period of at least five million shares a day, and the price was above U.S. $ 5 per share.
Rather paragraph: Help MetaStock - Filter Syntax
1. It remains to be chosen study «PS Long Sell Short Sale-5 day (Signal)». If it is not selected, do it, and then click Edit.
2. Select the filters Filter. The current filter is «ColA or ColB», screening campaigns, which have no value or 1 in column A or column B.
3. Adding to the volume. In human language we would say: «ColA or ColB and large volume». The trouble is that MetaStock does not know whether you want to process the first «or» or «and». To clarify this, we first take the «ColA or ColB» in parentheses. The formula should now look like this:
(colA OR colB)
Now add to the filter as follows: «and mov (volume, 50, simple)> 50000». It is divided as follows:
and => this condition must also be true
mov (=> is the rolling average
volume, => amount
50, => in the last 50 days
simple) => build on the simple moving average
> => The amount must be greater than
50000 => 5 million shares (the amount is transferred to our data provider Reuters Datalink in hundreds).
Now, the formula should look like this:
(colA OR colB) AND Mov (VOLUME, 50, SIMPLE)> 50000
4. Add a filter that excludes all the action, standing less than 5 U.S. This filter is written simply as «and Close> 5».
Now, the formula should look like this:
(colA OR colB) AND
Mov (VOLUME, 50, SIMPLE)> 50000 AND CLOSE> 5
5. Click OK to save your changes.
6. Click Explore, to re-run the study with the new filters.
At this time, the results showed only two signals of purchase - General Electric, and Bristol Meyers Squibb. Let's look at both of these graphics. Click on General Electric, and then press and hold Control and click on the Bristol Meyers, to select them all at once. Then click the Open Chart, to open both the schedule. Run the advanced test systems and test drive of LSS in both schedules. Now we can compare the lines of capital and results of the test system and to decide what to sell.
Expert Advisor
All 26 high-performance systems, MetaStock Performance Systems include the expert's supplied with MetaStock free. Expert Advisor to automate your trading system, applying the rules of your system to the latest data every time you open the schedule. If there was an alarm, a warning, a signal arrow indicates the place on the schedule. Over the same signal is described in detail in the comments of an expert.
Rather paragraph: Help MetaStock - Dialogue expert advisers
(Picture): Icon expert advisers
The experts shall be affixed to the schedule, with only one expert may be attached to the schedule at the same time. When you attach an expert for the first time, the system applies to all data in the chart. In the future, when you open the schedule attached to the expert, warning will be generated only for the most recent data. The signals also will continue to appear for all data.
Functional features of expert systems, MetaStock Performance Systems include:
• Symbols - buying and selling signals are indicated by arrows on the graph.
• Isolation - the price bars are colored green for long positions and red for short.
• Alerts - a dialogue box appears, notifying you about buying or selling signals.
• Comment - Description of the buy and sell signals.
Attaching the Expert
1. To attach an expert to open the schedule, select Expert Advisor Expert Advisor to the Tools menu Tools, click on the icon or an expert adviser on the toolbar. If the schedule does not open, go to page 22 to find the information on the opening graphics.
Rather paragraph (a picture): An icon expert advisers
2. Select an expert «PS Long Sell Short Sale-5 Day».
3. Click on the button fastener Attach.
4. Click on the close button Close. Now the expert is attached to the schedule.
Editing Expert
What if you want to open only long positions, and you do not need signals that are displayed for a short position? Edit the expert so that he showed only long signals, is a snap.
Rather paragraph: Help MetaStock - Creation Expert
Rather paragraph (a picture): An icon expert advisers
1. Select expert advisers in the tools menu, Tools, or click on the icon of expert advisers on the toolbar.
2. Select the expert for «PS Long Sell Short Sale-5 Day».
3. Click Edit.
4. Dialogue of expert advisers has six tabs - Names Name, trends Trends, comments Commentary, focuses Highlights, symbols Symbols and warnings Alerts. We will edit bookmarks Highlights, Symbols and Alerts.
5. Click on the Highlights. Disconnect option «Shorts.»
6. Select the Symbols. Disconnect option «Enter Short» and «Exit Short.»
7. Click the Alerts. Disconnect option «Enter Short» and «Exit Short.»
8. Click OK to confirm the changes you made.
9. Click Close, to close the dialog expert advisers.
The following illustration shows the changes in the schedule. Now, when we removed the short positions, rather than downward arrows indicating the closure of long transactions (and the opening short transactions), we have an exit sign.
View comments
1. Select expert commentary Expert Commentary on the menu View.
2. A comment-type shown below. It will explain all of today's signals, but will also contain a brief description of the system.
Basic Principles of Trade
Trade - risky business, but there are some steps you can take to increase your chances of success. The following does not constitute a complete description of the trade, but only a few tips in order to send you in the right direction.
• If you have never traded before, study some time training in trade. Take all actions related to trade, but instead of the actual placement of orders recorded their transactions on the sheet of paper. Or use one of the websites of virtual commerce, available on the Internet. Be honest with regard to points of entry and exit! You may wonder how it would be difficult to adhere to the trading system.
• Find a trading system that matches your style of trading, your risk tolerance and the markets in which you want to sell. If you can not spend much time tracking the market and do not like risk, use only long positions in the system with a small number of transactions. Use near the foot, and possibly to check the fundamental parameters of the action before you buy it. If you want to trade every day and love the risk, find the system that generates frequency signals. Your position may be more severe fluctuations, but you can get more profit.
• determine their levels of stop (the maximum you are willing to lose) to accommodate the deal. The worst feeling in the world - to watch the action, pushed beyond the point of foot, which you ignored in the heat of battle.
• Overall test systems showed that the market shares of some long positions only, without opening a short position, in principle, improves performance. This can be explained by the natural tendency of stock prices to increase. There are also other difficulties associated with short selling of shares - may be difficult to borrow shares, you can not sell short falling action, you may be forced to close the position, even if you do not want to do this, you have unlimited risk and limited profit, and etc. These factors should be considered when making decisions on opening short positions.
• deal only with money that you can afford to lose. Trade carries enough without adding the stress and tension related to the sale of other people's money.
• The risk in any transaction, only a small percentage of your trading account. Do not let a bad deal reset your account.
• Use a logical and disciplined approach to trade (ie to provide high-performance system that MetaStock Performance Systems). Do not buy Nike stock just because you spend so much money on sneakers for their children.
• The more you'll learn about trade, the better.
Disclaimer
Trading in securities is not an exact science. It should consider the following factors.
The future may not resemble the past
There is no guarantee that the future behavior of the prices of the securities will be similar to past behavior of prices.
Trade inherent risk
You may lose part or all of their money. There is no guarantee that future results will coincide with the results of advanced test systems.
Commissions and slippage
Research productivity, only count points score system, but do not include commissions, slippage, taxes, or other factors. Promising system must be confirmed by the test run the system with the test settings, consider your specific situation.
Positive transaction efficiency
Positive transaction efficiency does not imply that the system is profitable, it only means that it is superior to a strategy «Buy-and-hold».
Lack of support from the authors
Most of these systems is based on indicators developed by renowned guru of technical analysis, but they do not develop these systems. Many systems are a variety of systems promoted by these gurus. These systems are not in any way and are not supported by these sponsors. If the author is not mentioned, it means that the system is a unique system of group analysis trading systems Trading Systems Analysis Group.
This is not a proposal
Nothing in this guide does not constitute an offer or request to buy or sell any of these securities, they are used only to aid in the interpretation of the described methods of analysis. This information should be used only by those investors who are aware of the risks inherent in securities trading. Equis International and Trading Systems Analysis Group are not responsible for any damages resulting from use of this product or its contents.
Chapter Four - Description of MetaStock Performance Systems
Introduction
This section describes each of the high-performance systems, MetaStock Performance Systems to help you decide which system is better suited for you. Each system includes a brief description of the strategy, a description of the requirements for the signals, the characteristics of the transaction, allowing you to see how frequently trading system, and a list of material for further reading.
Please note: copying and distribution formulas of MetaStock Performance Systems is a violation of your license agreement. Do not use the organizer of the formulas Formula Organizer for export and distribution of these systems.
Description
This section provides a brief description of the system. Please note that most of the systems to a greater or lesser extent, a variety of original systems developed by the authors. For example, the system uses a standard PS CCI + / - 200, rather than the traditional level of + / - 100, as proposed by the author Donald Lambert. These varieties are the result of testing on historical data of many varieties of standard systems.
Alerts
Indicates conditions of entry and exit for the short and long positions. Not all systems use the short position. In most cases, the signals «long entry» and «short entry» are identical, as are the signals of «short entry» and «long exit». In this case, the system will bid 100% of the time, if you're selling and long and short positions. Some systems have different criteria apply and exit the market only a fraction of the time.
Characteristics of transactions
System MetaStock Performance Systems were tested on a set of actions, including moving and sedentary, with the ascending trend, and top-down trend, and moving sideways. The result of these tests is the frequency of transactions. It is understood that the use and long and short positions, and offered to close the transaction without delay.
Further reading
There are references to additional sources pertaining to the system or the author.
Systems
Adaptive Moving Average (Adaptive Moving Average)
Bull / bear force 1 (Bull Power Bear Power 1)
Bull / bear force 2 (Bull Power Bear Power 2 *)
Bull / bear's strength 3 (Bull Power Bear Power 3)
Commodity channel index CCI (Commodity Channel Index)
Predskazuyuschy Oscillator Chande (Chande Forecast Oscillator *)
Turn CMO (CMO Reversal)
Breakthrough of the consolidation (Consolidation Breakout)
Model 1234 Cooper (Cooper 1234 Pattern)
Progression cycle (Cycle Progression)
Dynamic Momentum Index 1 (Dynamic Momentum Index 1)
Exponential Moving Average (Exponential Moving Average *)
Fractal Trading System 1 (Fractal Trading System 1)
Fractal Trading System 2 (Fractal Trading System 2)
Sales of long positions, then a short sale - 5 days (Long Sell Short Sale - 5 Day *)
Figure 1 MACD (MACD Histogram 1)
Figure 2 MACD (MACD Histogram 2)
Perekuplennost / pereprodannost Mayzelsa (Meisels Overbought / Oversold *)
Sinus wave MESA (MESA Sine Wave *)
The system of trade pattern 1 (Pattern Trading System 1 *)
Percentage crossing of 3% (Percentage Crossover 3%)
Projected oscillator 1 (Projection Oscillator 1 *)
StochRSI
Index fluctuations (Swing Index *)
Vertical Horizontal Filter (Vertical Horizontal Filter)
Breakthrough volatility (Chaikin) - Volatility Breakout (Chaikin) *
* Study performance of this system comes with MetaStock free.
Adaptive Moving Average
Description
Adaptive Moving Average (AMA) was developed by Perry Kaufmann. AMA is designed so that you can adjust its sensitivity, depending on the trend of market forces. Cornering the market with a lot of noise requires a longer-term moving average, than the market with a strong trend. AMA revises the number of periods moving average, depending on the forces of the market trend.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open up a long / cover a short position when the AMA changes direction from the fall to increase.
On the paragraph: The system is configurable indicator.
Close long / short open position when the AMA changes direction from higher to fall.
Characteristics of transactions
System AMA offers a deal about once every four to six days, which makes it suitable for short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
Trading Systems and Methods. (Wiley Trading Advantage Series) John Wiley and Sons, Inc. 1998
Smarter Trading: Improving Performance in Changing Markets. McGraw-Hill. 1995
Bull / bear force 1
Description
Systems of bull / bear forces based on the concept of bull / bear force, developed and presented by Alexander Elder. Bull power is calculated by deducting from the maximum price of 13-Periodically exponential moving average. Usually, it is displayed as a graph, oscillating above and below the zero line. The value above the zero line gives the force of bulls. Bear Power is calculated by subtracting the 13-Periodically exponential moving average of the minimum bid. She also appears in a graph, oscillating above and below the zero line. The value below the zero line gives the force of bears.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Until the bull power indicator on the zero line more than an indicator bear forces zero line (in other words, Bull strength greater than the absolute value of force bears), supported by a long position. If the strength of the bears under the zero line more than the Bull of the zero-power line, then maintained a short position.
Characteristics of transactions
The system of bull / bear force 1 offers a deal every one to two weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Study Guide for Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Bull / bear force 2
Description
Explanation of the principles of bull / bear forces see in the Bull / bear force 1 (page 47).
Rather paragraph: Research productivity of the system comes with MetaStock free.
System Bull / bear power indicator 2 is not bull / bear forces directly. Instead, it appeals to the 5-Periodically inclination of the regression line bull and bear forces forces to determine which of them is gaining momentum. Position open, depending on which of them shows a great tendency to increase strength.
Alerts
Open up a long / cover a short position when the tilt of 5-Periodically the regression line bull's strength increases, while the same slope bear force decreases.
Open short / close a long position when the 5-Periodically slope of the regression line bull's strength decreases, while the same slope bear force increases.
Characteristics of transactions
System Bull / bear force 2 offers a deal once in every two to four days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
See Bull / bear force 1
Bull / bear force 3
Description
Explanation of the principles of bull / bear forces see in the Bull / bear force 1 (page 47).
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
System Bull / bear power 3 monitors the movement of lines of force indicators bull and bear forces on the rise and open positions when the lines are deployed.
Alerts
When the bear's strength is lowered to a minimum and then begins to grow again, the system waits for the next movement down. If the bear's strength will not be able to go down as low as in the first oscillation, it is believed that the bears are losing strength and a long position. Both the minimum should be below zero, so that the signal was due to the entrance.
When the Bull rises to a peak strength and then begins to decline again, the system waits for the next upward movement. If the Bull will not be able to power up as high as in the first oscillation, it is believed that bulls are losing force, and a short (bear's) position. Both the peak must be above zero, so that the signal was due to the entrance.
Characteristics of transactions
The system of bull / bear force 3 offers transaction times of two to four weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
See Bull / bear force 1
CCI (commodity channel index)
Description
Commodity channel index (CCI) was developed by Donald Lambert. Despite its name, this indicator is suitable for the shares, and commodity futures. Dr M Lambert proposes to use the CCI as an indicator of perekuplennosti / pereprodannosti, where 100 is perekuplennostyu, and - 100 is pereprodannostyu.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
The system shipped with MetaStock, based on further research, have determined that the + / - 200 gives a more pronounced signal a turn, and therefore closer to the ideal.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Open up a long / cover a short position when the 14-periodic CCI falls below - 200. Open short / close a long position when the 14-periodic CCI rises more than 200.
Characteristics of transactions
System CCI offers a deal once every ten or twenty weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
Futures magazine, October 1980
Predskazuyuschy Oscillator Chande
Description
Predskazuyuschy oscillator (Forecast Oscillator, FO) was developed by Tushar Chande (Tushar Chande) and is calculated by subtracting the closing price of the indicators of linear regression, and then formulate the result as a percentage. M-r Chande recommends using the intersection of the 3-FO Periodically moving average as a signal that the trend in the direction of motion of the oscillator may be inevitable. Predskazuyuschy oscillator should be positive for purchases and negative for sales, too late to prevent the occurrence.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when the 14-periodic predskazuyuschy oscillator crosses and goes above its 3-Periodically moving average and is in the positive territory.
Open short / close a long position when the 14-periodic predskazuyuschy oscillator crosses and goes below its 3-Periodically moving average and is in negative territory.
Characteristics of transactions
The system offers FO transaction approximately every three weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
The New Technical Trader: Boost Your Profit by Plugging Into the Latest Indicators (With Stanley Kroll). (Wiley Finance Editions) John Wiley and Sons, Inc. 1994
Beyond Technical Analysis: How to Develop and Implement a Winning Trading System. (Wiley Finance Editions) John Wiley and Sons, Inc. 1997
Turn CMO
Description
Chande Momentum Oscillator (CMO) was developed by Tushar Chande Momentum indicator as a standalone. With regard to the turn CMO, is to open a long position, it waits until the CMO does not spread upwards after descending Momentum. Once the CMO is developed, long position is closed, and the short position open. This places the industry in the Momentum of the securities (except for the first day of turn CMO).
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open up a long / cover a short position when the current 13-Periodically CMO is higher than the previous CMO, and the previous CMO - below the preceding bar (ie, CMO has formed the base and turned up).
Close long / short open position when the current 13-Periodically CMO is less than the previous CMO, and the previous CMO - above, preceded by the bar (ie, CMO formed top and turned down).
Characteristics of transactions
The system offers a CMO transaction approximately every three days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
See Predskazuyuschy Oscillator Chande.
Breakthrough of the consolidation
Description
The system uses a breakthrough from the consolidation of tape Bollindzhera John Bollindzhera and the average true range indicator (Average True Range) Uellesa Wilder. However, this system is not linked to any of the methods of the two authors. The system keeps track of narrow strips Bollindzhera indicating a decrease in volatility, and then break the tape to give a signal to buy or sell.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Breakthrough of the consolidation is a signal of two parts.
First, the width of the tape Bollindzhera should uzhatsya around the price to a point where the distance between the top and bottom lines will become less 1? value of 1-periodically averaged true range.
After compression, the tape:
Open a long position when prices breaks above the upper edge of the tape Bollindzhera.
Open a short position if the price breaks below the bottom line of the tape Bollindzh.
Out of long positions when the price crosses and goes below the 20-Periodically simple moving average.
Out of short positions when the price crosses and goes above 20-Periodically simple moving average.
Characteristics of transactions
The system offers a breakthrough from the consolidation of the transaction approximately every four to six weeks. Typically, a transaction lasts from two to four weeks. Since the output signals differ from the input signals, the system works in the market for about 30% - 40% of the time.
Further reading
Technical Analysis of Stocks & Commodities magazine, February 1992
Model Cooper 1234
Description
System «Model Cooper 1234» is based on the trading system Jeff Cooper 1-2-3-4. She finds that trend, and then waiting for departure, so that could open the position to continue the trend. While the overall scheme is approximately the same as that of 1-2-3-4, the system is that the input is carried out immediately (because the trend has already been identified). In addition, it developed a floating stop (for long positions) - when the price goes below the minimum of the previous day (provided that the position is moving in favor of the transaction). When working with short positions are being done the other way around.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
A full description of the signals can be found in the book, Dr. Cooper meters.
Characteristics of transactions
System «Cooper 1234» proposes a deal about every ten or twenty weeks. Most transactions lasts about one or two weeks. The system used to trade for less than 10% of the time, so the most appropriate strategy would be to apply it to a basket of shares.
Further reading
Hit and Run Trading: The Short-Term Stock Traders' Bible. M. Gordon Publishing Group. 1996
Hit and Run Trading II: Capturing Explosive Short-Term Moves in Stocks. M. Gordon Publishing Group. 1998
Hit and Run Lessons: Mastering the Trading Strategies. M. Gordon Publishing Group. 1999
The 5-Day Momentum Method. M. Gordon Publishing Group. 1999
Cycle progression
Description
System cycle progression is for anticipating short-term volatility of prices. The system determines the time when the last 5-day period days from the closing down is greater than the days of the closing up, and then opens a long position. When conditions are changing in the opposite, it closes a long and opens a short position.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
This system is configurable indicator.
This system is designed to capture very short-term cycles, and must be used with caution. While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses. You should use stop-orders, so as not to give a little unfortunate transactions destroy all the accumulated profit.
Alerts
Open up a long / cover a short position when in the past five days the number of days from closing up more than the number of days from closing down.
Open short / close a long position when in the past five days the number of days from the closing down more than the number of days from closing up.
Characteristics of transactions
The system offers a bargain-cycle progression at approximately four to six days, which makes it suitable for short-term traders. The system is always engaged in trade, if you use both long and short positions.
Dynamic Momentum Index 1
Description
Dynamic Momentum Index (DMI) is essentially RSI, as necessary, automatically adjusts the length of the period. DMI developed Tushar Chande and Stanley Kroll.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open a long position when the DMI falls below 30. However, the output approach other than the typical excess of 70 with follow-up care below. The position is closed, if at any time of the transaction price falls below the 5-Periodically simple moving average (acting as a rolling stop). The problem here, however, is that when the signal to enter the price, as a rule, is already below the 5-Periodically simple moving average, therefore, necessary protective measures to get out of position before you can grow excessive damages, but This should give enough time to rise above the rolling average, to produce a potential output signal. This is accomplished by checking the prices. If the position is loss-making third consecutive day of her fall.
Short positions of the situation should be vice versa.
Characteristics of transactions
System DMI offers transaction approximately every three to five weeks. Transactions are typically lasts one to two weeks. The system operates on the market 30% -40% of the time.
Further reading
The New Technical Trader: Boost Your Profit by Plugging Into the Latest Indicators. (Wiley Finance Editions) John Wiley and Sons, Inc. 1994
Beyond Technical Analysis: How to Develop and Implement a Winning Trading System. (Wiley Finance Editions) John Wiley and Sons, Inc. 1997
The Business One Irwin Guide to the Futures Markets. Irwin Professional Publishing. 1992
The Professional Commodity Trader. Traders Press. 1995
Exponential Moving Average
Description
System exponential moving average (EMA) extremely quickly following the direction of prices. Rather than attempting to determine the intersection of the single moving average optimum length, it is simply waiting for the 2-periodic exponential moving average starts to move up or down. If the 2-periodic EMA higher than yesterday's 2-periodic EMA, the system opens a long position. If the 2-periodic EMA is lower than yesterday's 2-periodic EMA, the system opens a short position.
On the paragraph: Research productivity of the system comes with MetaStock free.
When working with these mobile systems is useful to use protective foot. This particular system to help prevent unnecessary losses can be used as a minimum the last stop of the day (or, in the short position, the maximum of the previous day).
Alerts
Open up a long / cover a short position when the current 2-periodic EMA more previous 2-Periodically EMA.
Open short / close a long position when the current 2-periodic EMA is less than the previous 2-Periodically EMA.
Characteristics of transactions
System EMA offers a deal about every two to four days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Fractal trading systems 1 and 2
Description
Although the sale of securities, there are many definitions of «fractality», the definition used in these systems is the younger version of the type defined by Bill Villyamsom, Ph. D., and his methods of trading based on the chaos. By Bill Villyamsu, «bottom-up fractal» is defined as a central bar, surrounded by two lower maxima. «Descending fractal» represents the opposite of where the central bar has two sides to a higher level.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Both systems are based on a very small percentage of the total trade of Bill Williams.
Alerts
Fractal system 1 opens a long position when the price goes above the last bottom-up fractal. When the price falls below its most recent top-down fractal, being out of position and opening a short position.
Fractal system 2 is identical to 1 except that instead of being deployed position after the price goes below the most recent downward fractal, it closes the position after crossing the minimum of the second after the most recent downward fractal. In a fractal system, 2 short positions do not apply.
Characteristics of transactions
Fractal system 1 offers the transaction approximately every two to four weeks; fractal system 2 offers the transaction approximately every six to ten weeks. Fractal system 1 is always involved in trade, if you use both long and short positions. Because the fractal system 2 does not use the short position, it is in position 50 - 70% of the time.
Further reading
Trading Chaos: Applying Expert Techniques to Maximize Your Profits. (Wiley Finance Editions) John Wiley and Sons, Inc. 1995
New Trading Dimensions: How to Profit from Chaos in Stocks, Bonds, and Commodities. (Wiley Trading Advantage) John Wiley and Sons, Inc. 1998
Sales of long positions, then a short sale - 5 days
Description
Indicator 'long position', 'sale', 'short sale' ( 'Long', 'Sell', 'Short Sale', LSS) was developed by George Angell. It was conceived as a 3-periodic indicator only for intraday trading, but is used here as a 5-periodic indicator suitable for the purpose of the sale price end of the day (almost the end of the day). Here it is used as an indicator of perekuplennosti / pereprodannosti. When the indicator moves below the LSS 0.3, it is seen as pereprodannost. When it moves above 0.7, it is seen as perekuplennost. In principle, this indicator (depending on what mode it is at any given time) may be leading or lagging indicator on Stochastics of the same period, and if desired can be used with the same trading techniques.
Rather paragraph: Research productivity of the system comes with MetaStock free.
This system is configurable indicator.
This system requires accurate price discovery.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Please refer to the description of this indicator to books m-ra Angell.
Characteristics of transactions
System «Selling long position, then a short sale» offers transaction approximately every three weeks. The system is always engaged in trade, if you use both long and short positions.
Further reading
Sure-Thing Options Trading: A Money-Making Guide to the New Listed Stock and Commodity Options Markets. New American Library Trade. 1984
Winning in the Futures Markets: A Money-Making Guide to Trading, Hedging and Speculating. Probus Publishing Co. 1990
How to Triple Your Money Every Year With Stock Index Futures. Windsor Books. 1984
Real Time Proven Commodity Spreads: The 20 Most Consistently Profitable Low-Risk Trades. 1985
MACD Charts 1 and 2
Description
Indicator «schedule MACD» was to promote Alexander Elder. This system uses the schedule as well as the commonly used normal MACD; it looks for differences between the indicator and the price. Schedule MACD is calculated by subtracting the 9-Periodically exponential moving average of the MACD of the MACD. Next, the deviation of prices from this indicator, and the transaction was called in the direction of movement of the indicator with the hope that soon will be followed, and price.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
This system is configurable indicator.
Although it is presented here as a complete system and, as such, it is functional, it is primarily a method of entry. When using this system should also think about a preferred strategy for your stop-loss and exit.
Alerts
MACD graph 1:
Open up a long / cover a short position when the MACD graph shows a positive deviation from the price (in other words, the schedule makes new records, while prices can not make a new max).
Open short / close a long position when the MACD graph shows a negative deviation from the price (in other words, the schedule makes the new minimum, while the prices can not make the new minimum).
MACD Graph 2:
Signal the opening of the long / short position of opening the same as for the graphics MACD 1. A long position is closed when the schedule MACD turns down. A short position is closed when the MACD graph turns up.
Characteristics of transactions
Systems MACD charts 1 and 2 suggest the transaction of approximately every ten to twenty weeks. The system schedule MACD 1 always participates in the trade, if you're selling and long and short positions. The system schedule MACD 2 is involved in the sale of 20% -30% of the time.
Further reading
Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Study Guide for Trading for a Living: Psychology, Trading Tactics, Money Management. (Wiley Finance Editions) John Wiley and Sons, Inc. 1993
Perekuplennost / pereprodannost Mayzelsa
Description
Ron Mayzels developed an indicator Mayzelsa as an indicator of perekuplennosti / pereprodannosti, which moves between +10 and - 10 and based on the fact whether the market closes above or below the previous day auction over the past 10 days. It applies the concept of the original entrance, which opens a long position when the indicator reaches - 6 (pereprodannost), a short position - when the indicator reaches 6 (perekuplennost). In this case, was added to output, when the indicator reaches a zero level, moving in any direction. This gives a very good short-term approach to trade.
Rather paragraph: Research productivity of the system comes with MetaStock free.
This system is configurable indicator.
The system perekuplennosti / pereprodannosti Mayzelsa will work best with a cyclical rather than trend securities.
As with all indicators and systems perekuplennosti / pereprodannosti, although this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Open a long position when the indicator drops to Mayzelsa level or below - 6 (this value indicates that six of the last 10 periods of trade decline in the prices shown).
Close long positions when the indicator Mayzelsa rises to the level or above 0.
Open a short position when the indicator Mayzelsa raised to level 6 or above.
Close the short position when the indicator Mayzelsa falls to or below 0.
Transaction Specifications
The system perekuplennosti / pereprodannosti Mayzelsa offers transaction approximately every ten to fifteen weeks. The deal usually lasts from one to four weeks. The system is in the sale of 10% -20% of the time.
Sinus wave MESA
Description
Indicator «sinus wave MESA» was developed by John Ehlersom. Sam is an indicator for the determination of whether the securities in cyclical trend or condition. However, short of time used in this system does not allow to really hold this distinction. Instead, the system tries to identify and use the very short-term cyclical behavior. Because your time is very short, sinus wave MESA almost converted into a binary indicator of a very sharp sensitivity to a change in direction. Transactions in the system can easily occur daily.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when the 2-periodic indicator MESA Lead Sine less than 2-periodic indicator MESA Sine Wave.
Open short / close a long position when the 2-periodic indicator MESA Lead Sine more than 2-periodic indicator MESA Sine Wave.
Characteristics of transactions
The system offers a sinus wave MESA transaction approximately every three days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
Technical Analysis of Stocks & Commodities magazine, November 1996 MESA and Trading Market Cycles. John Wiley and Sons, Inc. 1992
The system of trade pattern 1
Description
The system of trade pattern 1 is designed for use in stocks and stock indexes, because it relies on stocks exhibiting inherent tendency to increase. The system should be the philosophy that any movement upwards becoming signal input, and any downward movement after the commencement of a confirmed a rising trend (two days or more bottom-up movement) becomes a valid signal output. Being a very fast system, it can also be extremely profitable. Since ascending the slope has already taken into account, the system does not use the short position.
Rather paragraph: Research productivity of the system comes with MetaStock free.
While this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you. You should use stop-orders, so as not to give a little unfortunate transactions erase all the accumulated profit.
Alerts
Open a long position after the two bottom bars in succession.
Close a long position in the first descending bar after at least two consecutive ascending bars.
Characteristics of transactions
The system of trade pattern 1 offers transaction approximately every two weeks. Trades usually last one to two weeks. Because the system does not use the short position, the system is in the sale of approximately 60% -70% of the time.
Percentage crossing 3%
Description
The system opens the percentage of crossing the deal after the security will increase by 3% while out of the deal after the securities will decline by 3%. Thus, this indicator, following the trend. Using per cent allows the indicator to be tied to the price of individual security. Drawback here is that if the price moves in cyclical movements, the system will have an excessive number of loss-making transactions at the extrema of oscillations.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open up a long / cover a short position when the security is increased by 3%.
On the paragraph: The system is configurable indicator.
Open short / close a long position when the securities will fall by 3%.
Characteristics of transactions
The system of 3% per transaction offers crossing approximately every three to six days (more often for moving the shares, less frequently for stable shares). The system is always engaged in trade, if you use both long and short positions.
Projected oscillator 1
Description
Projected oscillator is in principle Stochastics, adjusted for tilt. It is designed Melom Vidnerom, Ph. D. This is an indicator that identifies its position on the projected tapes (Projection Bands). In this system, unlike the trade oscillator position about 20/80, as is done with conventional stochastic oscillators, trade is conducted on short-term smoothed projected oscillator on its own even more short-term moving average.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when 8/3-periodichny projected oscillator goes above its 3-Periodically moving average.
Close long / short position open when 8/3-periodichny projected oscillator goes below its 3-Periodically moving average.
Characteristics of transactions
The system of «projected oscillator 1» proposes a deal about every two to four days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
Technical Analysis of Stocks and Commodities magazine, July 1995
StochRSI
Description
Indicator StochRSI developed Tushar Chande and Stanley Kroll. One of the problems associated with the use of RSI as an indicator perekuplennosti / pereprodannosti is that because of the built-smoothing may take a long time before the extreme. As a result, it misses many important trading signals. Application of a stochastic process for the RSI has resulted in the extreme will be reached within a limited time (preferably when a credible signal of trade). As with the stochastic oscillator, the system is traded around the extremes of 20 and 80.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
This system is configurable indicator.
As with all indicators and systems perekuplennosti / pereprodannosti, although this system is very good, with a profit in most transactions, it does not provide any mechanism to protect against losses if the deal suddenly go against you.
The New Technical Trader: Boost Your Profit by Plugging Into the Latest Indicators. (Wiley Finance Editions) John Wiley and Sons, Inc. 1994
Beyond Technical Analysis: How to Develop and Implement a Winning Trading System. (Wiley Finance Editions) John Wiley and Sons, Inc. 1997
The Business One Irwin Guide to the Futures Markets. Irwin Professional Publishing. 1992
The Professional Commodity Trader. Traders Press. 1995
Index fluctuations
Description
Index fluctuations Uellesom Wilder was created to identify the true price of the securities by assessing the price of opening / maximize / minimize / close the current bar, as well as the previous bar. Then the system displays this ratio as a value above or below the zero line. Because she is looking for a change in the direction of the price (perebiraya bar for the bar), it traded with a philosophy very similar trading pattern to 1, but much more often. It also allows the use of short positions.
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open up a long / cover a short position when the 3-day fluctuations in the index is above 0. Close long / short open position when the 3-day fluctuations in the index is below 0.
Characteristics of transactions
The system of index fluctuations offers transaction approximately every three days, which makes it suitable for very short-term traders. The system is always engaged in trade, if you use both long and short positions.
Further reading
New Concepts in Technical Trading Systems. Trend Research. 1978
The Adam Theory of Markets or What Matters Is Profit. Trend Research. 1987
Vertical horizontal filter
Description
Vertical horizontal filter (VHF) was developed by Adam White. It is like a coefficient of consistency between the yield of the securities and the market as a whole (r-squared) and Uellesa Wilder ADX indicator that identifies a trend / netrendovoe behavior, except that it's not such a sensitive, as the r-squared (which reduces the number of loss-making transactions in the oscillation) and a much more sensitive than ADX (which increases the chance to enter at the beginning of the trend). Identifying trend status, VHF is trying to determine in which direction is the trend, examining the slope of the linear regression with the same periods that the VHF, and then opens the appropriate position. Withdrawal shall be effected when the trend stops.
Rather paragraph: Research productivity of the system is available in additional packages MetaStock Performance Systems Plus.
Alerts
Open a long position when the 21-periodic VHF goes above 0.3 and the slope of the 21 linear regression Periodically positive.
Close a long position when the VHF goes below 0.7 or a negative slope.
Open a short position when the VHF goes above 0.3 and the slope is negative.
Close the short position, when the VHF goes below 0.7 or a positive slope.
Characteristics of transactions
The system offers VHF bargain about once in every three months. Transactions are usually closed after about two to four weeks. The system is in the sale of approximately 50% -60% of the time.
Further reading
Futures magazine, August 1991
Breakthrough volatility (Chaikin)
Description
The system uses a breakthrough volatility indicator of volatility created by Marc Chaikin to determine very short periods of increasing volatility. Typically, transactions on the system are kept only for one or two days. The system tracks the increase in volatility of the securities and then opens up a bargain in the direction of prices. Out of position is carried out or where the prices are starting to move in the opposite direction, or when the volatility is reduced (warning of the potential change of direction).
Rather paragraph: Research productivity of the system comes with MetaStock free.
Alerts
Open a long position when the ratio of 10 periods / 10 periods of rate of change indicator Chaikin volatility increases, and price increases.
Close long positions when volatility is reduced, and the price goes down.
Open a short position, when volatility increases, and the price goes down.
Close the short position, when the volatility is reduced, and the price rises.
Characteristics of transactions
The system offers a breakthrough volatility transaction approximately every two to four days, which makes it suitable for very short-term traders. The system is in the sale of approximately half the time.
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