I have just coded Jeff Cooper's "5 Day momentum method". This is my second attempt to develope code for MetaStock. I would appreciate anyone taking a look at my code. Suggest inprovements or point out any errors that you see.

Here are the rules:

Buy Rules:

Only trade stock whose ADX is 35 or greater.

+DI > -DI

8 period Fast %k <= 40

Close > 50

Sell Rules:

Only trade stock whose ADX is 35 or greater.

+DI < -DI

8 period Fast %k >= 60

Close > 40

My buy code:

PDI(14)>MDI(14) AND
Stoch(8,1)<=40
AND
CLOSE > 50
AND
ADX(14)>35
AND
Mov(V,90,S)> 50000 {I added Volume to screen out trash}

My Sell code:

PDI(14)<MDI(14)
AND
Stoch(8,1)>=60
AND
CLOSE > 40
AND
ADX(14)>35
AND
Mov(V,90,S)> 50000 {I added Volume to screen out trash}

Thanks

Thanks Preston for your reply. The above rules are as stated in Cooper's 1997 '5 day momentum' publication.

I will move the ADX to the top. I did not know it made any difference as long as the argument was written correctly.

Thanks again!

back to the ADX then. this one as I understand it, indicates not so much the trend (plus or minus, whichever is predominant at the time) but merely the strength of it. for instance, if the trend is positive & the ADX is coasting happily along >40, you want to watch out for any downturn because that could indicate the end of the trend. same in a fierce downward-trend, there again you'll get a high ADX reading until it downturns indicating imminent end of minus-DI run.

the ADX obeys no master. it'll work the same for plus or minus. supposed to anyway.

in that context, Yonah's formula "Only trade stock whose ADX is 35 or greater" makes sense. except I'm not sure it's a sufficiently important criteria. as Pumrysh says: "There is an inherent flaw in the indicator that renders it useless for trend identification until it has exceeded a value of 30 or above. That's usually pretty slow and puts you into a momentum trade very late".

that's for sure.

yonah,

Went back and reviewed your code and the Cooper rules. Cooper looks for stocks trading between $40 and $50, therefore you will want to change the your code to reflect this. He also looks for opportunities to enter a momentum trade. His exits are within 5 days of the entry.

While I have already mentioned my feelings about the ADX another potential problem that I noticed was with the Stoch. You will want to make sure that it is less than 40 and rising rather than just below 40.

Here is how I would change the code:

PDI(14)>MDI(14) AND
Stoch(8,1)<=40 AND Stoch(8,1) > REF(Stoch(8,1),-1
AND
CLOSE >= 40 AND CLOSE <= 50
AND
ADX(14)>35
AND
Mov(V,90,S)> 50000

There are a few other conditions that you may want to consider changing. Best advice that I can give you is to plot the indicators on a chart and see what you think

Best of luck,

Preston

Hi Anory,

I have noticed that you seem to get better results if you can find a security where +DI has JUST crossed above -DI and ADX >35. Here is my present code for a buy:

ADX(14)>35 AND
PDI(14)>MDI(14) AND
Stoch(8,1)<=40 AND Stoch(8,1) > Ref(Stoch(8,1),-1) AND
CLOSE > 50 AND
Mov(V,90,S)> 50000

I have tried to code for +DI crossing above -DI within the last 3 days, but have not figured it out yet. Can you help me?

Thanks,

Y

Thanks oztrader. that is exactly what I needed!! It is really simple once I see the code. I had looked at BarsSince but just was not bright enough to figure it out. [:$]

Maybe you can help me on another code not related to this one? I am new to the forum and metastock. If I should not ask in this thread let me know. I am trying to read everything I can, but still am trying to "earn as I learn." [:D]

For the month of January 2008 only, I would like to check to see if the daily High or Low is higher or lower than the monthly high or low for the month of December 2007.

I would also like to scan on Fridays after market close, checking if the January 2008 weekly High or Low is higher or lower than the monthly high or low for the month of December 2007.

The method to my madness? For some commodities the breaking of December's high or low in January can signal new price trends in the market.

Thanks,

Y