#### Topic: Difficulty understanding logic

I'm having difficulty understanding the written logic for some of the generated strategies.

For example:

"Opening (Entry Signal)
Open a new long position or reduce a short position at the Upper Band of Keltner Channel* (Simple, Close, 20, 10, 2) when the following logic condition is satisfied:

the position opens below the closing price of the previous bar."

What does it mean by "position opens below the closing price of the previous bar" ?  I don't understand what "position" refers to in FSB as it seems to be used in a different way to how most people talk about open positions (ie ongoing trades).

And when it says "at the Upper Band" does it mean when the market price reaches the previous bar's Keltner Channel Upper Band value ?

#### Re: Difficulty understanding logic

Opening price of this strategy is at  Keltner Channel bands.
- Long entry is at the Upper Band
- Short entry is at the Lower Band.

A long position can be open only below the previous Close.
A short position can be open only above the previous Close.

So for a long entry  Upper Band of Keltner Channel must be lower than the previous Close.
For short entry: Lower Band of Keltner Channel must be higher than the previous Close.

And when it says "at the Upper Band" does it mean when the market price reaches the previous bar's Keltner Channel Upper Band value ?

Exactly!

#### Re: Difficulty understanding logic

I'm still having trouble understanding "position opens below the closing price of the previous bar". Sorry, but it just doesn't seem like the best wording to me as it's not at all clear what is meant by "position".

For example, in another strategy:

Open a new long position or close a short position at the beginning of the bar when all the following logic conditions are satisfied:

the position opens below the closing price of the previous bar; and
the Awesome Oscillator (Exponential, Open, 34, 5) falls; and
the Price Oscillator* (Simple, Weighted, 10, 0) is higher than the Level 0.

So what does "position opens below the closing price of the previous bar" mean in this context ?

#### Re: Difficulty understanding logic

Open a new long position or close a short position at the beginning of the bar when all the following logic conditions are satisfied:
the position opens below the closing price of the previous bar; and

"the position" refers to "a new long position" from the first sentence.

"the position opens below the closing price of the previous bar;"
it means that in order to open a position, it's entry price must be lower than previous Close.
But entry price is at current bar Open.

So we can open long only if we have a gap: Current_Open < Previous_Close

Finally we can substitute the position opens with Bar Open.

And the description will be:

Open a new long position ... when ...:
bar opens below the previous bar close ; and
...

We use this description because the logic condition doesn't know what is the entry price. It says that what ever the entry price is, it must be lower than the previous close. The entry price is set in the Opening Point slot.

It is something like:
Buy me a beer (or cola, or ...) when:
- it costs less than \$2;

The condition doesn't know what at what price we buy. But we can buy only when it costs less than \$2.