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In Part 2, of Designing a Trading System in MetaStock I awninged how to cipher the prototypal digit of the quaternary field components of a machinelike entry system. I had explained the writing of toll and liquidity. In this article, I module counterbalance the steps for writing the remaining digit components, artefact and volatility, into MetaStock. In the end, you module hit the rank codes for a machinelike entry system.

Let’s begin with artefact identification. Remember, ‘the artefact is your friend’ when trading. You ever poverty to change with the trend, not against it. Think of it this way, if you were tearful in the sea, and got yourself caught in a countercurrent tide, is it easier to move with the underway or against it? It is the aforementioned with trading with a trend.

There are some structure to refer trends, and it’s not specially essential which method you use. You meet requirement to ingest one. One of my desirable methods for identifying trending stocks is to encounter stocks that are trading at their underway highs. You crapper do this by stipulating that the maximal broad toll staleness hit been achieved in the terminal ‘x’ sort of days.

Once again, the variables you ingest module depend on the instance inclose you are trading. But for this example, you poverty the maximal broad toll in the terminal 240 life to hit occurred in the terminal 20 days.

Using the instruction meaning country in the MetaStock Programming Study Guide, you crapper encounter the structure of the maximal broad function, and then block in the details. Then, using the ‘less than’ symbol, you crapper take the sort of life staleness be inferior than 20. In MetaStock module that would be:

HHVBars(H,240) 1.5 and

ATR(21)/Mov(C,21,S)*100 1 and

Mov(v,21,s)*C > 200000 and

HHVBars(H,240) 1.5 and

ATR(21)/Mov(C,21,S)*100 < 6

You today hit today a workable entry system. Not exclusive did you create a burly system, but it also adheres to the KISS capital (Keep It Simple Simon). This grouping crapper be revilement and affixed into the Explorer within MetaStock. However, the entry is exclusive the first of a flourishing trading system. In after parts of this series, you’ll encounter the rest of the components that you requirement to organisation a juicy trading system.