Does this setup make sense ?

[Boggo]

David, can you have a quick look at the setup below and advise of any contradictions etc.

The intention is to enter at the open on the day following the buy signal [(Fml( "MJW Buy Signal") =1);].

Stop if the price crosses below the buy signal (after entry).

Exit at open of the day following the sell signal [Cross(Fml("MJW Stop Loss"),CLOSE);] if the price opens below the sell signal.

It seems to test OK and the results are consistent with the past history but I am approaching my limit of understanding of what I am doing.

What items are permitted in the InitialStop ?
InitialStop := ?????????;, at the moment I am using my trailing stop loss which is also my sell signal.

All comments appreciated.
Boggo


EntryPrice := CLOSE;
EntryTrigger := (Fml( "MJW Buy Signal") =1);

ExitPrice := CLOSE;
ExitTrigger :=
Cross(Fml("MJW Stop Loss"),CLOSE);

InitialStop := Fml("MJW Stop Loss");

NewEntryPrice := OPEN;
NewEntryTrigger := Ref(EntryTrigger,-1) AND
OPEN >= Ref(EntryPrice,-1);

NewExitPrice := OPEN;
NewExitTrigger := Ref(ExitTrigger,-1) AND
OPEN <= Ref(Fml("MJW Stop Loss"),-1);

ExtFml( "TradeSim.Initialize");

ExtFml( "TradeSim.EnableProtectiveStop",0);
ExtFml( "TradeSim.UseClosingPriceAsStopThreshold");
ExtFml( "TradeSim.SetStopGapPriceToOpen");

ExtFml( "TradeSim.SetProfitStop",10);

ExtFml( "TradeSim.RecordTrades",
"MJW Buy Signal (Star Stocks)",
{ Trade Data Filename }
LONG, { Trade Position Type }
NewEntryTrigger, { Entry Trigger }
NewEntryPrice, { Entry Price }
InitialStop,{Optional InitialStop}
NewExitTrigger, { Exit Trigger }
NewExitPrice, { Exit Price }
START); { Recorder Control }

[David Samborsky]

For long trades the InitialStop should be less than your EntryPrice.

InitialStop := ?????????;, at the moment I am using my trailing stop loss which is also my sell signal.

Yes this is a good way of doing it because the stop will be a snapshot of your trailing stop when you enter the trade thus allowing you to precisely control your risk.