ATMASphere Aug 2014

Designing a trading system – Part 4
So far in this series, we have covered till the creation of the system. Now let
us get down to coding the system so that we can carry out backrests and
position sizing suited for the system. For simplicity, I am providing the full
codes for Metastock. The codes are commented so that it helps you to
convert the system to Amibroker, Ninjatrader, MT4/5 or any other suitable
software.
The Trend Breakout System by Subhadip Nandy (codes for Metastock)
(Ref(C,-1)Ref(C,-2))){{ previous close greater than the close of
day before}
AND (L< O- (( Ref(H,-1)-Ref(L,-1))*.55)) 1))*.55))){ low of today less than
today’s open minus 55% of yesterday’s range}
{} contains the comments, Metastock will ignore whatever is written
within these parenthesis
Now if you select the ‘Trend Breakout ver. 1.0’ and attach it to a
chart, it will look like this:
1. Open the expert advisor icon in Metastock and click “New”
2. Name it “Trend Breakout System ver 1.0 “
3. Click “Symbols”, then click “New”, Name is “Buys”
4. Input this formula –
(Ref(C,-1)>Ref(Mov(C,13,S),-1)){Previous close greater than 13SMA}
AND ((Ref(C,-1) O+ (( Ref(H,-1)-Ref(L,-1))*.55))){today’s high is greater
than today’s opening plus 55% of yesterday’s s range}
5. Under Graphics, choose the UP ARROW symbol, color BLUE, click
OK to save
6. Now create the SELL signal with a red down arrow, code will be –
AUGUST 2014
We now know when to buy or sell and at what prices. We also
know our stopples and exit points. Now we need to know how
much to buy at each signal, i.e., what is the money management
ATMASPHERE | 15