Trading Strategies from Active Trader Magazine

Monthly Breakout

This system test requires several settings be made in addition to the formula. It can only be used in MetaStock 8.0 or latter. 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:
  
  new:=roc(month(),1,$)<>0;H>ref(highestsince(7,new,H),-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:
  
  new:=roc(month(),1,$)<>0;ref(highestsince(7,new,H),-1)
  
  
• Set the enter size dropdown to "Number of Units"
• Enter a 1 in the space to the right of the entry size
• Set the expiration to "Good for Day"
• Select the Sell order tab and enter this formula:
  
  new:=roc(month(),1,$)<>0;L<ref(lowestsince(7,new,L),-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:
  
  new:=roc(month(),1,$)<>0;ref(lowestsince(7,new,L),-1)
  
  
• Set the expiration to "Good for Day"