Trading Strategies from Active Trader Magazine

'Blood in the Street' System

This system requires at least MetaStock 8.0 easily follow the Dow while trading a different security. The ticker symbol used for the Dow is the Reuter’s DataLink symbol. If you are using a different vendor, you will need to change the symbol used in the security data function. 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:

    Security(".DJI",rsi(30))<40 AND sum(c<ref(c,-4),9)=9

  • Set the enter size dropdown to "% of available equity"
  • Enter a 10 in the space to the right for the entry size
  • Select the Sell Order tab and enter this formula:

    profit:= Simulation.CurrentPositionPointDifference;

    (profit/(c-profit)>=0.13) OR (sum(c>ref(c,-4),9)=9)