• Registered: 2010-12-26
  • Posts: 38

Topic: are the following close logic conditions achievable?

Hello all, love using this software and the capacity to test new ideas.

I was hoping someone might assist me and advise whether it is possible to achieve the following exit scenarios.

Exit at the moving average, plus an offset in price.

Trading short time frames I have noticed that when price gets a certain distance away from a moving average that it is a profitable exit position. (Obviously the distance from the moving average varies with currency and time frame).

I see the option to "Exit at the Moving Average" but is there a way of adding an amount (I have called it an offset)  in pips, points....to the current Moving Ave value which I understand is based on the close of previous bar value.

I have looked at "Envelopes" and possibly there is a way of changing deviation to a preset number of pips instead of %, but I am not sure how

Also and this may reflect a novice understanding of the software

Is it possible to have this type of close (similar for Bollinger Bands, Envelopes) trigger during the bar and as soon as the price reaches the band, envelope......upper band value in the case of a long trade.
Maybe it works this way in FST now, but I don't have experience in using FST in real time yet.

Seems to me that this would be a good method of capturing spikes in price action.
thanks in advance
dave

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  • Registered: 2009-08-17
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Re: are the following close logic conditions achievable?

dave88 wrote:

Exit at the moving average, plus an offset in price.

Try using Steady band indicator, you can set the margin in pips.

Is it possible to have this type of close (similar for Bollinger Bands, Envelopes) trigger during the bar and as soon as the price reaches the band, envelope......upper band value in the case of a long trade.

Sure thing it's achievable (you set the closing at upper band), but there's an issue with the usage of previous bar value which needs to be tested. By default, the exit is done by comparing the price with previous bar indicator value, that means in the backtest chart price doesn't actually touch the band in many cases (current bar touches its previous value). So to assure the exit is carried out when price touches the band, previous bar value usage has to be turned off. But yet another issue rises - the question about the reliability of the backtest, that's why the closing indicator, which has PBV (previous bar value) turned off, needs to be tested to confirm it works the same as in the backtest and follows the thought/idea behind the strategy.

Illustration:
http://s2.postimage.org/orxcculg/I_can_do_science_me.jpg

This is the issue I'm talking about, 22k seems nice, doesn't it? But that needs to be confirmed in a live test and post-trade comparison between FSB/FST (as Donchian uses high/low, it very likely the backtest result of 22k is not reliable and therefore false).

There is another possibility as well - use "Open" as the base price, it turns PBV off, exit is done when touch occurs and the test is reliable.