Trading Strategies from Active Trader Magazine

100-20 Channel Breakout System

This system requires MetaStock 8.0 or later to set the correct trade size and entry price. There is no difference between the stock and future version of these formulas. 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:
  
  h>=ref(hhv(h,100),-1)
  
  
• Set the order type to "Stop Limit"
• Enter the following formula for the Limit or Stop Price formula:
  
  ref(hhv(h,100),-1)
  
  
• Set the enter size dropdown to "% of available equity"
• Click the italics f to the right of the space for the entry size
• In the window that appears, enter the following formula:
  
  equity:=Simulation.AccountCash+Simulation.AccountBorrowed+
  Simulation.PortfolioValue+Simulation.AccountReserved;
  (equity*.02)/ref(hhv(h,100)-llv(l,20),-1)
  
  
• Select the Sell Order tab and enter this formula:
  
  L<=ref(llv(L,20),-1)
  
  
• Set the order type to "Stop Limit"
• Click the italics f to the right of the space for the entry size
• In the window that appears, enter the following formula:
  
  ref(llv(L,20),-1)
  
  
• Select the Sell Short Order tab and enter the following formula:
  
  L<=ref(LLV(L,100),-1)
  
  
• Set the order type to "Stop Limit"
• Enter the following formula for the Limit or Stop Price formula:
  
  ref(LLV(L,100),-1)
  
  
• Set the enter size dropdown to "% of available equity"
• Click the italics f to the right of the space for the entry size
• In the window that appears, enter the following formula:
  
  equity:=Simulation.AccountCash+Simulation.AccountBorrowed+
  Simulation.PortfolioValue+Simulation.AccountReserved;
  (equity*.02)/ref(hhv(h,20)-llv(l,100),-1)
  
  
• Select the Buy to Cover Order tab and enter this formula:
  
  h>=ref(hhv(h,20),-1)
  
  
• Set the order type to "Stop Limit"
• Click the italics f to the right of the space for the Limit or Stop Price
• In the window that appears, enter the following formula:
  
  ref(hhv(h,20),-1)