Traders' Tips from TASC Magazine

The Cocked Gun Revisited

In the article "The Cocked Gun Revisited", Rudy Teseo introduces two trading systems using RSI and Stochastics.

To create these systems, in MetaStock, select the System Tester from the Tools menu. Then click New and enter the formulas as listed below

RSI formulas:

Name: RSI enter long
Ref( Cross( RSI(14), 30),-1) and H >= Ref( H, -1 )+1

Name: RSI enter short
Ref( Cross( 70, RSI(14)),-1) AND L <= Ref( L, -1 )-1

Stochastic formulas:

Name: Stochastic enter long
setup:= Mov(Stoch(5,3),3,S) <
20 AND Cross(Stoch(5,3),Mov(Stoch(5,3),3,S));
Ref(setup,-1) AND H >= Ref(H,-1)+1

Name: Stochastic enter short
setup:= Mov(Stoch(5,3),3,S) >
80 AND Cross(Mov(Stoch(5,3),3,S),Stoch(5,3));
Ref(setup,-1) AND L <= Ref(L,-1)-1