A MetaStock Addon Trading System.
By David Jenyns
In Part 1 of Designing a Trading System in MetaStock addon, I had
discussed the major components you needed to be able to track to
create a mechanical entry system. These were measures of price,
liquidity, trend, and volatility. The question now is, how do we
code this MetaStock addon?
First, let me offer you the most valuable piece of knowledge I have
acquired over the years about MetaStock addon formula writing. This
one secret will turn you into a MetaStock addon master. Do you think
I know all of the MetaStock addon pre-programmed formula and propriety
indicators? Well, I'm good, but I'm not that good.
When coding a MetaStock addon, the key to getting it ÿ0rightÿ( is
to write what it is you are trying to achieve ÿ0down in Englishÿ(.
Once you've done this, it is easy to convert it into a MetaStock
Let's look at an example. Our first entry condition is a measure
of price. As mentioned in Part 1, you want to set a price minimum
to remove speculative stocks. Please note that the values you select
will depend on the exchange you are trading. Some markets tend to
be more expensive than others. For this example, we are looking
to design a long-term MetaStock
addon trend following system to trade on the Australian Stock
In Australia anything under $1 could be classed as a speculative
stock. So how do you stipulate that the stocks you want must be
greater than $1? First, ÿ0write it in Englishÿ(: You want stocks with
a 21-day average closing price that is greater than $1. Now, you
can convert this into a MetaStock addon formula.
Using the formula reference section in the MetaStock Programming
Study Guide , you can check the syntax of a moving average.
Once you have this information, it's simply a matter of plugging
in the correct numbers. Then, by using the ÿ0greater thanÿ( symbol,
you can stipulate the price to be greater than $1. The MetaStock
addon code will look like this:
Mov(c,21,s) > 1
Let's move onto the next component, liquidity. This is a measure
of how much money a stock trades. It is important to identify stocks
that have enough money moving through them so that you're never
caught with a stock you can't get out of. For this example, let's
say we require the 21-day average of volume multiplied by the closing
price to be greater than $200,000. In MetaStock addon language this
Mov(v,21,s)*C > 200000
In the next article I'll go through the last two components needed
to design a mechanical entry system or MetaStock
addon . With this information, you will be well on your way
to starting an effective, and profitable, MetaStock addon trading
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