Wednesday, August 13, 2008

Variations of the 6 Day Low

Inputs: Len1(6), Len2(19), Len3(64), len4(80);
If Close = LowestFC(Close, Len1)
Then Buy This Bar at Close;
If Close Crosses Above Average(close,Len2)
Or LinearRegValue(Close, Len3, 0) > Len4
Then Exitlong This Bar at Close;
Here's another approach to the 6 Day Low exit in lieu of a fixed number of days. It's based on a 3 prong approach using a MA moving average crossover, a change in the Linear Regression value (not slope or angle) and a Breakeven Floor stop (BFS) of $155 per 100 shares of the position.
While this system produces less net return that the fixed exit, the winner/loser ratio is considerably improved and the total number of trades is reduced. Holding time is reduced by a total of 24 days and average holding time per trade is 5 days so risk exposure is reduced by 1 day. . . Hey! . . . a lot can happen in 1 day.
This is just another component of the BASKET OF SYSTEMS concepts I've mentioned several times. Eventually, I'll morph the Grand Slam Cheaphooker CCI RSI %R 10 Day Low 816 CrossOver System into a workable trading model that will predict market moves with NASA precision. Until then, feel free to fiddle with the code and adapt to your own trading style and goals.

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