Trading Strategies from Active Trader Magazine

Two-bar Breakout System (stocks)

MetaStock 8.0 or latter is required to specify the entry price for this system. 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:

    ref(l<ref(l,-1) and h<ref(h,-1) and c<o,-1)

  • Set the order type to Stop Limit
  • Enter the following formula for the Limit or Stop Price:

    ref(h,-1)+.01

  • Select the Sell Order tab and enter this formula:

    l<ref(l,-1)

  • Set the order type to "Stop Limit"
  • Enter the following formula for the Limit or Stop Price:

    ref(l,-1)

  • Select the Sell Short Order tab and enter the following formula:

    ref(l>ref(l,-1) and h>ref(h,-1) and c>o,-1)

  • Set the order type to "Stop Limit"
  • Enter the following formula for the Limit or Stop Price:

    ref(l,-1)-.01

  • Set the enter size dropdown to "number of units"
  • Enter a 1 in the space to the right of the entry size
  • Select the Buy to Cover Order tab and enter this formula:

    h>ref(h,-1)

  • Set the order type to Stop Limit
  • Enter the following formula for the Limit or Stop Price:

    ref(h,-1)