Traders' Tips from TASC Magazine

When and When not to Trade

Jongseon Kim's, "When and When not to Trade" he presents a trading system based on the TRIX indicator. This indicator is built into MetaStock and does not need to be defined in a custom formula. The formulas that follow create an exploration, and a system test based on his conditions.

To create this exploration, in MetaStock, go to Tools and select the Explorer. Click New and enter a name ("TRIX system"). Then enter the following formulas in the corresponding tabs:

TRIX system

COLUMN FORMULAS
ColumnA: gold X
tx:=TRIX(5);
sig:=Mov(tx,3,E);
Cross(tx,sig)
ColumnB: Fall
tx:=TRIX(5);
Cross(0,ROC(tx,1,$))
FILTER
Formula:
colA OR colB

To create the system test, in MetaStock, go to Tools and select System Tester. Click New and enter a name ("TRIX system"). Under the corresponding tabs, enter the following formulas:

TRIX System

Enter Long:
tx:=TRIX(5);
sig:=Mov(tx,3,E);
Cross(tx,sig)
Close Long:
tx:=TRIX(5);
Cross(0,ROC(tx,1,$))

Using the 4 conditions defined, it is also possible to create an expert advisor. Below is a chart with such an expert attached.

To create this expert, in MetaStock, go to Tools and select Expert Advisor. Click New and enter a name ("TRIX system"). Select the symbols tab and click New. Enter the name of the symbol. Then enter the formula. Click the Graphic tab and select the desire symbol, the color you would like it displayed it and the text to be displayed. On this screen, you also specify the location of the symbol and the text in relation to the price bars. Below are the formulas and the selections used in the example expert:

Name: Gold Cross

Formula:

tx:=TRIX(5);
sig:=Mov(tx,3,E);
Cross(tx,sig)
Graphic: Buy Arrow
Size: Medium
Color: Dk Yellow
Label: GC
Symbol position: below price
Label position: below symbol

Name: Dead Cross

Formula:

tx:=TRIX(5);
sig:=Mov(tx,3,E);
Cross(sig,tx)
Graphic: Sell Arrow
Size: Medium
Color: Dk Red
Label: DC
Symbol position: above price
Label position: above symbol

Name: Bounce

Formula:

tx:=TRIX(5);
Cross(ROC(tx,1,$),0)
Graphic: Exit Sign
Size: Medium
Color: Blue
Label: B
Symbol position: above price
Label position: above symbol

Name: Fall

Formula:

tx:=TRIX(5);
Cross(0,ROC(tx,1,$))
Graphic: Exit Sign
Size: Medium
Color: Dk Green
Label: F
Symbol position: below price
Label position: below symbol

William Golson
Equis International

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