Rank: Member
Groups: Registered, Registered Users Joined: 2/7/2005(UTC) Posts: 16 Location: BC
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I think I'm going nuts because I can't solve this problem and I think it should be easy to solve, so I feel really stupid. Well, here goes anyway.
I'm trying to do a very simple System Test using moving average crossover formulae for buy and sell. I can see on the chart for the stock that I am testing there would be very few buys and very few sells. However, when I do the test, the system keeps buying and selling even though a crossover hasn't occurred, until the chart of the system is loaded with the buy and sell symbols. It's rediculous. I thought that my protective stop was generating some of them so I cancelled it but it still happens.
I have changed other variables as well, but there is no difference, or very little.
All I want to do is buy the stock when a crosses above b and sell when a crosses below b. I am experimenting with various percentages of equity. It seems pretty simple to me, but getting MetaStock to do it is so far beyond me!
Before I go, I'd like to thank Patrick (my son has the same name!) and g_stockman for helping me on two other occasions. I should have thanked you sooner. My apolgogies.
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers Joined: 9/9/2004(UTC) Posts: 107 Location: Salt Lake City, UT
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Shelly, Sounds like you are using greater than or less than function for the formula in the system test. If you us the cross function I think you will have better success. for example
Buy signal
Cross( mov(c,7,s),mov(c,21,s))
Sell signal
Cross( mov(c,21,s),mov(c,7,s))
Regards
Doc
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers Joined: 9/8/2004(UTC) Posts: 2,266
Was thanked: 1 time(s) in 1 post(s)
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Shelley,
the problem might be from :
Quote: I am experimenting with various percentages of equity
Setup your system the way you wnat it, then run a points only test to confirm that the signals indeed occur at the right times, and that everything is setup properly.
Once you have done this and confirmed everything was correct then run an equity test and make sure to use 95% of your equity or below. I explained the reason why somewhere else ... I will look for it.
Patrick :mrgreen:
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Rank: Member
Groups: Registered, Registered Users Joined: 2/7/2005(UTC) Posts: 16 Location: BC
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Doc, yes I am using the greater than or less than function. I will try your suggestion. Thanks!
Patrick, I'll try that too.
Thanks Guys. I'll let you know how things work out.
Shelley
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Rank: Member
Groups: Registered, Registered Users Joined: 2/7/2005(UTC) Posts: 16 Location: BC
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Patrick and Doc:
Well, the problem was the greater than or less than functions I was using in the formulas. But now I have another problem. Although the formulas I am using are very similar to the ones posted by Doc, the system keeps buying and selling on the same day even though the cross for the sell has not occured. Any ideas about what I am doing wrong?
Regards,
Shelley
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