Traders' Tips from TASC Magazine
When and When not to Trade
Jongseon Kim's, "When and When not to Trade" he presents a trading system based on the TRIX indicator. This indicator is built into MetaStock and does not need to be defined in a custom formula. The formulas that follow create an exploration, and a system test based on his conditions.
To create this exploration, in MetaStock, go to Tools and select the Explorer. Click New and enter a name ("TRIX system"). Then enter the following formulas in the corresponding tabs:
TRIX system
sig:=Mov(tx,3,E);
Cross(tx,sig)
Cross(0,ROC(tx,1,$))
To create the system test, in MetaStock, go to Tools and select System Tester. Click New and enter a name ("TRIX system"). Under the corresponding tabs, enter the following formulas:
TRIX System
sig:=Mov(tx,3,E);
Cross(tx,sig)
Cross(0,ROC(tx,1,$))
Using the 4 conditions defined, it is also possible to create an expert advisor. Below is a chart with such an expert attached.
To create this expert, in MetaStock, go to Tools and select Expert Advisor. Click New and enter a name ("TRIX system"). Select the symbols tab and click New. Enter the name of the symbol. Then enter the formula. Click the Graphic tab and select the desire symbol, the color you would like it displayed it and the text to be displayed. On this screen, you also specify the location of the symbol and the text in relation to the price bars. Below are the formulas and the selections used in the example expert:
Name: Gold Cross
Formula:
tx:=TRIX(5);
sig:=Mov(tx,3,E);
Cross(tx,sig)
Graphic: Buy Arrow
Size: Medium
Color: Dk Yellow
Label: GC
Symbol position: below price
Label position: below symbol
Name: Dead Cross
Formula:
tx:=TRIX(5);
sig:=Mov(tx,3,E);
Cross(sig,tx)
Graphic: Sell Arrow
Size: Medium
Color: Dk Red
Label: DC
Symbol position: above price
Label position: above symbol
Name: Bounce
Formula:
tx:=TRIX(5);
Cross(ROC(tx,1,$),0)
Graphic: Exit Sign
Size: Medium
Color: Blue
Label: B
Symbol position: above price
Label position: above symbol
Name: Fall
Formula:
tx:=TRIX(5);
Cross(0,ROC(tx,1,$))
Graphic: Exit Sign
Size: Medium
Color: Dk Green
Label: F
Symbol position: below price
Label position: below symbol
William Golson
Equis International
Contents
- Affine transformation
- Anticipating Moving Average Crossovers
- At Last! A Trend-Friendly Oscillator
- Average True Range or Standard Deviation
- Balance of Market Power
- Between Price and Volume
- Bollinger Band Targets
- BONUS ISSUE: Mutual Fund Screen
- Boosting Profitability - the AIM Indicator
- Breakout_Range2
- Bridging the Gap, Linking Point & Figure and Bar Charts
- Buff Up Your Moving Averages
- Bull and Bear Balance Indicator
- Candlestick Filtering
- Coding Candlesticks (II)
- Confirming the Price Trend
- Creating Multi-Colored Indicators in MetaStock
- Darvas-Style Trading and Something Darvas
- Deviation Oscillator
- Directional Breakout
- Ehlers Filters
- Elastic Volume Weighted Moving Average
- Finding Key Reversals
- Fisher Transform
- FVE - %b
- FVE - lin reg slope
- FVE - Storz's divergence
- FVE w/ linear regression slope
- High Low Strategy
- High Tech Mesa Adaptive Moving Averages
- Hilbert Indicators Tell You When to Trade
- Holding Overnight Positions
- Hot Zones
- How Smooth is Your Data Smoother
- Ichimoku Charts
- Index of Chart Sentiment
- Laguerre Filter
- Laguerre RSI
- MACD of Relative Strength
- Moving Average Crossovers
- Moving Average: Long on Talk, Sort on Action
- Normalization
- Now's The Time To Trade Crude
- Pivot point Strategy
- Profit with ETFs
- Quicken Your Averages
- Red-Green Strategy
- Refining the Hilbert Indicator
- Regularization
- Relative Performance Charting
- RSI Bands
- Squelch Those Whipsaws
- sRSI - Original
- sRSI - Using Wilders
- Stochastics
- Tandem Studies on Market Movement
- Targeting Your Pattern
- TC 2000 Scans
- The Average Peak Excursion
- The Cocked Gun Revisited
- The Inverse Fisher Transform
- The Self-Adjusting RSI
- The Truth about Volatility
- The Wilson Relative Price Channel
- Thrust Oscillator
- Trade Against the Gap
- Trade Into the Gap
- Trade the Swing Price
- Trend Continuation Factor
- Trend Quality Indicator
- Trend Trigger Factor
- TrendIV & Volume - Buy Signal
- TrendIV & Volume - Sell Signal
- Triggering Your Trading System
- Using Money Flow to Stay with the Trend
- Using Volume to Detect Shifts In Power
- Volatility System
- VWAP for Support and Resistance
- When and When not to Trade