Intermarket Trading Strategies
BUY THE DIPS (BTD)
This system looks for strong stocks in an uptrend and buys on the first day of rebound after a temporary weakness (dip or pullback).
BTD for metastock
BTD Easy Language Strategy
This is how the system performed (last column) 13 trading days after the entry signals on a portfolio of 2500 US stocks during the 10 year period from 5/25/ 2002 to 5/25/12. To produce the test results I used Tradesim (metastock plug-in) with the following input parameters:
Initial trading capital = $300,000
Capital per trade= $20,000 (Equal dollar units) and no margin.
Max. Open positions: 20
Commissions: $5 per trade
Volume filter: Limit position to 8% of trading volume
Minimum Trade size:$2000
Test date: 5/25/2012
Data loaded : 2720 records
Time Stop: 12days (not counting entry day).
Entry at the close & Exit next day at the open.
Why don't I get any hits?
Check out the errors at the rejects column. If you see "Results of filter formula not defined on calculation date" you will need to load more data. To search for long term uptrends and also calculate the VFI indicator you will need at least 500 records (2 years) of data.
Why do the explorations take too long to run?
Because of the large amount of data required it will be quicker to run the exploration on data stored in your hard disk rather than online.
Why do I get only very few hits?
You might be running the explorations on too few stocks. Personally I run the explorations on 2500 US stocks and usually get 0-13 hits a week depending on market conditions.
Do the explorations work with FOREX?
No, they don't work if there is no volume.This is because they use volume indicators to filter the results. They do work though with FOREX futures. A way to get around the volume problem is to add 1000 to the volume field using the downloader. This will mean, however, that volume filters will not work.
I don't have an account with Paypal. How can I buy the system?
If you will email me I will send you a paypal money request which you can settle with your credit card.
Anybody can produce good historical performance if the system is optimized enough. How do we know that it will perform just as well in the future?
First of all I did not optimize parameters (You can't optimize metastock explorations ) .
And secondly the fact that the system performed so well on a portfolio of 2500 stocks suggests that the system is robust enough to perform well in the future.
Is the code password protected? Can I modify it?
No, it is not password protected.
Does it work with all stocks ?
I recommend to avoid small cap biotech stocks. These stocks have no earnings and can be unpredictable and volatile as they make huge moves on news of success or failure of new drugs.
FREQUENTLY ASKED QUESTIONS (FAQ)