|  AUG 1997

Traders' Tips

TRADESTATION The June 1997 issue of STOCKS & COMMODITIES discussed a tried-and-true technique known as TRIX in the article “Playing TRIX: The triple exponential smoothing oscillator.” The TRIX indicator and system code below for TradeStation includes alerts and signals based on both the crossing of the zero line and the crossing of the linear regression average. The inputs, aside from the basic parameter adjustments, will also allow you to specify whether you want to generate alerts and signals on the crossing of the zero line, the linear regression average or both. ...continuded METASTOCK Last month, the MetaStock Traders’ Tip covered creating a template and formulas to reproduce rainbow charts, which were introduced by Mel Widner in the same issue. This month I’ll show how to create a system test, which will allow you to test the exit strategy Widner gave toward the end of the article (under the subheading, “Beating buy-and-hold”). For this test, I’ve chosen to enter a long position when all rainbow averages are in an uptrend sequence. The exit rule used here adheres to Widner’s instructions in the article. To perform this test, first enter the following three custom indicators by choosing “indicator builder” from the Tools menu. (Note: The first two formulas are repeated from last month’s Traders’ Tips, so if you’ve already entered them, you’ll only have to enter the third formula.) ...continuded

by Technical Analysis, Inc.