Registered User
Joined: 1/8/2007
Posts: 56
|
Greetings,
Have you found any "wiz bang" exit strategies for Backscanner "long plays" that work better than 50% and don't seem to give up large amounts of gains made in the stocks? I've tried Trailing stops and price lower than say yesterday or several days back as well as a variety of moving averages crossing down thro' and they always seem to exit after giving back large percentages of gain.
Thanks.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Trailing will only give back what you allow. Are you favoring entries over exits or exits over entries in your BackScan settings?
It sounds like you may want to favor exits to enforce your exits.
- Craig
Here to Help!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
Well changing this setting certainly alters the trades. My interest is more to the side of finding a better way to test my backscan conditions. Without a more effective way to automate the sell trigger, I am left with the idea that I must test by virtue of finding entry points and "assume" I would be montitoring the stock for the sell trigger. Of course this defeats one of the main points of backscanner. Hence I am back at you looking for better ways to exit.
Having beaten that to a pulp do you have a suggestion for altering the bollinger ban buy signal so it triggers when the stock is at the bottom band? The choices now are "above or below" neither of which are really ideal. My goal is to trigger a buy, (long), when the stock price is at or very near the bottom bollinger band to take the safer ride up. Of course if I use "below" the lower band I am violating the "support of the bollinger as well as missing the many safer trades just above the LBB.
Any ideas for these two questions?
1. Buy at the LBB
2. Sell if the price reaches and drops off the UBB.
Thanks,
Scott
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
What part of price to you want to compare to the LBB?
How do you want to define "near"?
- Craig
Here to Help!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
Sorry, the close of the day for both the buy or the sell.
Near is within ten percent off the LBB.
The sell is harder to define. I would like to believe I would be following the stock to "let the profits run". But that assumption does not work with a computer. I would be happy for the purposes of testing if I could use a pullback of the stock's close today being lower than yesterday's low.
Thanks
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
I should've mentioned I tired many times to use the backscanner condition of close vs yesterday's low or several day's lows and backscanner always seemed to trigger the sale way after several such events losing substantial parts of the profits.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
QUOTEthe stock's close today being lower than yesterday's low.
You can do this with the Price vs Price condition. Set it to Close 0 days ago is below the Low 1 day ago.
For your buy its the following?
The close today is less than 110% the value of the lower bollinger band?
- Craig
Here to Help!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
yes
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
I made a change the Price vs. Bollinger condition. It now has a new setting called BB multiplier.
In your case above you would set it to Close below Lower Band and the multiplier to 1.1
Save it in the following folder:
\My Documents\Block Files\Tool Parts\BackScan Conditions
Once there, you can add it in your BackScan via the ADD CONDITION button and choosing MY COMPUTER.
Attachments:
Price vs. Bollinger Bands with multiplier.scond - 6 KB, downloaded 623 time(s).
- Craig
Here to Help!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
Thanks more than you know!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
That my friend pops the win ratio up to 63%!
You are now my hero, 
Thanks for working your magic.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
My pleasure. Make sure you peak at the Block Diagram for the condition to see where I added the Multiply by Value block.
- Craig
Here to Help!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
I intend to. I had already decided to see what you did so I can try the reverse for a sell signal to see if the win ratio increases.
I have to reserve this work for the morning because I have an appointment to keep. Have a great evening!
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
You can use the same condition for your sell.
Set it to
Close
Above
Upper Band
BB multiplier
0.98
(it will close you out when the close gets within 2% of the upper band)
- Craig
Here to Help!
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
Concerning the Sell trigger, I tried it. I found that I lose big if the price does not rise up high to reach the TBB multiplier. Therefore I decided to try to add an "or" sell condition which would be a "multiplier" of the price the stock was bought at by the buy signal. This then would catch those price sequences that drop below the price paid for the stock after the buy was triggered, without having risen first to satisfy the top BB miltiplier sell trigger. Since I found nothing remotely like this, (a sell based on a backscanner triggered buy price), I am back to ask if this is even possible. In simpler terms:
Can the blocks diagram program use one of its own buys, (actual price when a buy is triggered), to be the basis against which a multiplier is applied for a sell trigger which will limit the loss? If I am not being clear I will try to explain by writing the condition:
"Sell if close price today is less than or equal to (multiplier)*(Price paid)"
examples. Backscanner triggers a buy at 10.00/sh
then we wait for the sell order off the UBB multiplier which for the purposes of this example doesn't happen-the stock drops kicking in my 'asked for" second condition OR: Sell if close today is < (.90)*(10.00)
1. the stock closes at 9.50 today > (.90)*(10.00), answer false no sell is triggered.
2.the stock closes tomorrow at 8.95 which is < (.90)*(10.00), answer true- a sale is triggered.
What say you?
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
Tuckerp229,
Unless I'm misunderstanding, the requested BackScan Condition is already in the Web Library under Trade Stops and is called Trade % Gain/Loss. In your example, you would use the following settings:
- Operator: <=
- % Gain/Loss: -10.0000
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
Yes I did miss this but how do I select just the "loss" part? Otherwise it triggers a sale whether I gain or lose the percentage chosen.
Thanks,
|
|
Registered User
Joined: 1/8/2007
Posts: 56
|
Now I understand. The operator is a trigger for the sell, since it is part of the sell conditions when it triggers , it sells.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Think of it this way...
You sell if the return on the trade is LESS THAN or EQUAL TO -10.
If you are up on the trade 5% it won't trigger because +5 is greater than -10
If you are down 9% on the trade it won't trigger because -9 is greater than -10
If you are down 10.01 on the trade it will trigger because -10.01 is LESS THAN -10.
- Craig
Here to Help!
|
|
|
Guest-1 |