gawdib
11th January 2004, 08:48 PM
I cannot figure out after reading the appendix many times, how the trailingstop function works. I try putting values into each parameter, but nothing happens.
Could you please tell me how parameters 4-6 work... in more detail.
4 says you put in the "type of trailing stop." An example is given that seems to result in a positive number. Does it always have to be a metastock formula that would end up as a number (then of course that would be changed by the tradesim program into a binary 1 or 0)?? What if i put in a simple number "1" or "100". What would that do exactly?
Then, parameter 4 is called a "reference point". A point WHERE the trailing stop is calculated. And an example is given as a "high". pART OF My confusion comes because there is no information about WHICH high.... eg, today's high? yesterday's high, the highest high since entry? the highest high in the past week? etc?
Another point OF PARAMETER 4, there is given the implication that only a "volatility function" can be used. So that means that i cannot put in a FIXED perentage off the highest high value of the close since entry?
Then, parameter 6 is the "threshold point", and a " stop band" is mentioned. Under parameter 2, it is indicated
that one chooses using "band" for an indicator and "trigger" for simulations. So I am confused what 6 is supposed to do and what one is allowed to do. Does 6 mean which aspect of the "stock" price's movement for today is taken as causing the trailing stop value to be EQUALED OR EXCEEDED, so that an exit occurs?
I know the Metastock definition of trailing stop in the system testing, which is " The trailing stop maintains a history of the best profit achieved on each bar using the high price for long positions and the low price for shorts. When it has a history ,of the length specified in the Periods field from entry, it starts comparing the best profit in that history to the worst profit achievable on the current bar. If it determines that the difference between the highest historical profit in the trailing period and the worst profit of the current bar is equal to or greater than the Profit Risk field, it will exit the position.
The stop attempts to exit at the price that would value the position at the highest profit over the historical period less the trailing value. If this value is not available, it will exit at the open."
Is there anything comparable in tradesim>?
What I need is for the program to register the highest close since the first entry into a trade. Then to exit after some amount lower than that highest close, which I programed in to the trailing stop external function. Thank you very much. regards geoffrey
Could you please tell me how parameters 4-6 work... in more detail.
4 says you put in the "type of trailing stop." An example is given that seems to result in a positive number. Does it always have to be a metastock formula that would end up as a number (then of course that would be changed by the tradesim program into a binary 1 or 0)?? What if i put in a simple number "1" or "100". What would that do exactly?
Then, parameter 4 is called a "reference point". A point WHERE the trailing stop is calculated. And an example is given as a "high". pART OF My confusion comes because there is no information about WHICH high.... eg, today's high? yesterday's high, the highest high since entry? the highest high in the past week? etc?
Another point OF PARAMETER 4, there is given the implication that only a "volatility function" can be used. So that means that i cannot put in a FIXED perentage off the highest high value of the close since entry?
Then, parameter 6 is the "threshold point", and a " stop band" is mentioned. Under parameter 2, it is indicated
that one chooses using "band" for an indicator and "trigger" for simulations. So I am confused what 6 is supposed to do and what one is allowed to do. Does 6 mean which aspect of the "stock" price's movement for today is taken as causing the trailing stop value to be EQUALED OR EXCEEDED, so that an exit occurs?
I know the Metastock definition of trailing stop in the system testing, which is " The trailing stop maintains a history of the best profit achieved on each bar using the high price for long positions and the low price for shorts. When it has a history ,of the length specified in the Periods field from entry, it starts comparing the best profit in that history to the worst profit achievable on the current bar. If it determines that the difference between the highest historical profit in the trailing period and the worst profit of the current bar is equal to or greater than the Profit Risk field, it will exit the position.
The stop attempts to exit at the price that would value the position at the highest profit over the historical period less the trailing value. If this value is not available, it will exit at the open."
Is there anything comparable in tradesim>?
What I need is for the program to register the highest close since the first entry into a trade. Then to exit after some amount lower than that highest close, which I programed in to the trailing stop external function. Thank you very much. regards geoffrey