Anthony Trongone’s article on moving averages uses a trading system with no overnight positions. It is possible to replicate this test in MetaStock, but it requires a slightly unusual setup:

<li>Select Tools > the Enhanced System Tester. <li>Click New <li>Enter a name, “TMA System” <li>Select the Buy Order tab and enter the following formula.

<li>V>10000 AND <li>Ref(O,1)>Mov(C,34,s) AND <li>(C-Ref(O,1))<0;

<li>Set the Order Type to Stop Limit <li>Select the Limit or Stop Price and enter the following formula:

Ref(O,1)

<li>On the Strategic Delay (Bars) line, set Day to 1. <li>Select the Sell Order tab and enter the following formula.

1

<li>Set the Order Type to Stop Limit <li>Select the Limit or Stop Price and enter the following formula

C

<li>Click OK to close the system editor.

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

<li>On the third screen (System Testing Options), click the More button in the lower right corner. This brings up a new window. <li>Click the Trade Execution tab. <li>Make sure Realistic Market Prices is not checked. <li>Set the Delay Order Opening value to 0 <li>click Ok to close the window <li>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