Monday, August 11, 2008
Buy 6 Day Low, Exit In 7 Days
This is a little departure from the Buy the 10 Day Low system I looked at last week. What's impressive about this system is the total ROI for the 5 year test period relative to the previous 10 day systems tested, while incuring no more downside risk.
As the title says, this system buys the 6 day low and sells at the close of the 7th day. You don't even need a computer to figure this one out.
The system also includes a TS Breakeven stop ExitLong of $95 for every 100 shares, and this gooses the ROI by $600, so it's worth including. The stop is a default ADD in the TS strategy builder and can be turned on or off with a click.
TS users can set the SHOW ME function for 6 day lows (or 8 or 9 day lows for the 10 day system), monitor 30 minutes pre-close and enter a MOC order if you don't want to work the trade.
TS2000i code below:
Inputs: Len1(6), Len2(7);
If Close = LowestFC(Close, Len1)
Then Buy This Bar at Close;
If BarsSinceEntry = Len2
Then Exitlong This Bar at Close;