Trading Strategies from Active Trader Magazine

Two-bar Breakout System (stocks)

MetaStock 8.0 or latter is required to specify the entry price for this system. To create this system:

• Select the Enhanced System tester from the Tools menu
• Click New
• Enter the name of the system
• Select the Buy Order tab and enter the following formula:
  
  ref(l<ref(l,-1) and h<ref(h,-1) and c<o,-1)
  
  
• Set the order type to Stop Limit
• Enter the following formula for the Limit or Stop Price:
  
  ref(h,-1)+.01
  
  
• Select the Sell Order tab and enter this formula:
  
  l<ref(l,-1)
  
  
• Set the order type to "Stop Limit"
• Enter the following formula for the Limit or Stop Price:
  
  ref(l,-1)
  
  
• Select the Sell Short Order tab and enter the following formula:
  
  ref(l>ref(l,-1) and h>ref(h,-1) and c>o,-1)
  
  
• Set the order type to "Stop Limit"
• Enter the following formula for the Limit or Stop Price:
  
  ref(l,-1)-.01
  
  
• Set the enter size dropdown to "number of units"
• Enter a 1 in the space to the right of the entry size
• Select the Buy to Cover Order tab and enter this formula:
  
  h>ref(h,-1)
  
  
• Set the order type to Stop Limit
• Enter the following formula for the Limit or Stop Price:
  
  ref(h,-1)