Traders' Tips from TASC Magazine

Profit with ETFs

It is possible to replicate this test in MetaStock, but it requires a slightly unusual setup:

  1. Select Tools >
    the Enhanced System Tester.
  2. Click New
  3. Enter a name, “Timing Model for ETFs”
  4. Select the Buy Order tab and enter the following formula.
    • RSI(H,2)<2 AND
    • Ref(RSI(H,2),-1)>1 AND
    • C>Mov(C,200,s)

 

  1. Set the Order Type to Stop Limit
  2. Select the Limit or Stop Price and enter the following formula:
    • L*1.025

     

  1. On the Strategic Delay (Bars) line, set Day to 1.
  2. Select the Sell Order tab and enter the following formula.
    • C>Ref(H,-2) OR
    • C>Ref(C*1.075,-2) OR
    • Simulation.CurrentPositionAge>=6

 

  1. Set the Order Type to Stop Limit
  2. Select the Limit or Stop Price and enter the following formula
    • If(C>Ref(H,-2), Ref(H,-2),
    • If(C>Ref(C*1.075,-2) , Ref(C*1.075,-2), C))

 

  1. Click OK to close the system editor.

 

Then when running a trading simulation, you must also make 1 additional setting change:

  1. On the third screen (System Testing Options), click the More button in the lower right corner. This brings up a new window.
  2. Click the Trade Execution tab.
  3. Make sure Realistic Market Prices is not checked.
  4. Set the Delay Order Opening value to 0
  5. click Ok to close the window
  6. Continue setting up the simulation as you wish.

 

Once you have made this setting change, it will remain until you change it to something else.

 

William Golson

Equis International

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