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James E Rich and John B. Rich's article, “Simplify It”, presented a simple trading system. The article suggested using the direction of a 50 period SMA on the SPY to find the market trend. Then look for stocks in a trend going the same direction. From there, channel lines are used to find the entry and exit points. The formulas below combine all those conditions into entry and exit signals you can put into a system test or an expert adviser. Enter Long: Code:s1:= Security("SPY", C);
ma1:= Mov(C, 20, S);
ma2:= Mov(C, 50, S);
ma3:= Mov(C, 200, S);
dir:= If( ROC( Mov(s1, 50,S), 1,$)>0, 1, -1);
tradelong:= dir = 1 AND
ma1 > ma2 AND ma2 > ma3;
tline:= Mov(H,8,S);
bline:= Mov(L,8,S);
el:= C > tline AND tradelong;
xl:= L < bline;
trade:= If(el, 1, If(xl, 0, PREV));
trade = 1 AND Ref(trade = 0, -1)
Exit Long: Code:s1:= Security("SPY", C);
ma1:= Mov(C, 20, S);
ma2:= Mov(C, 50, S);
ma3:= Mov(C, 200, S);
dir:= If( ROC( Mov(s1, 50,S), 1,$)>0, 1, -1);
tradelong:= dir = 1 AND
ma1 > ma2 AND ma2 > ma3;
tline:= Mov(H,8,S);
bline:= Mov(L,8,S);
el:= C > tline AND tradelong;
xl:= L < bline;
trade:= If(el, 1, If(xl, 0, PREV));
trade = 0 AND Ref(trade = 1, -1)
Enter Short: Code:s1:= Security("SPY", C);
ma1:= Mov(C, 20, S);
ma2:= Mov(C, 50, S);
ma3:= Mov(C, 200, S);
dir:= If( ROC( Mov(s1, 50,S), 1,$)>0, 1, -1);
tradeshort:= dir = -1 AND
ma1 < ma2 AND ma2 < ma3;
tline:= Mov(H,8,S);
bline:= Mov(L,8,S);
es:= C < bline AND tradeshort;
xs:= H > tline;
trade:= If(es, 1, If(xs, 0, PREV));
trade = 1 AND Ref(trade = 0, -1)
Exit Short: Code:s1:= Security("SPY", C);
ma1:= Mov(C, 20, S);
ma2:= Mov(C, 50, S);
ma3:= Mov(C, 200, S);
dir:= If( ROC( Mov(s1, 50,S), 1,$)>0, 1, -1);
tradeshort:= dir = -1 AND
ma1 < ma2 AND ma2 < ma3;
tline:= Mov(H,8,S);
bline:= Mov(L,8,S);
es:= C < bline AND tradeshort;
xs:= H > tline;
trade:= If(es, 1, If(xs, 0, PREV));
trade = 0 AND Ref(trade = 1, -1)
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