Traders' Tips  |  DEC 2001

Traders' Tips

Traders' Tips TRADESTATION: FINDING KEY REVERSALS Massimiliano Scorpio’s article “Finding Key Reversals” in this issue includes the EasyLanguage code for a key reversal–based strategy (a trading system) that also performs some basic statistical analysis to determine how often such price patterns occur and how often they lead to profitable moves. The strategy calls a custom function for identifying key reversals, and the EasyLanguage code for that is also included in the article. While the ideas presented are sound, there are some issues with the code that may make it difficult to use as-is, so we are presenting an alternative version here. The key issues are: • The code will not run on the currently shipping TradeStation 6 platform because buy and sell statements are now written differently and stops are implemented internally in the EasyLanguage code instead of via external settings. (Some of the required changes are made automatically if you import the code from an ELS file, but if you are typing the code in, you need to make the changes yourself.)

by Technical Analysis, Inc.