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MetaStock "systems"

  1. I have been working for a while in MetaStock for a "system" to identify good "buys". My current "system" is doing alright but often it is too slow to react and I have sometimes missed out on some profits. I would like to see if my current system could be modified to find the stocks a little earlier in the uptrend (wouldn't we all!) Although it changes my criteria is currently:

    AND ADX(14)>25
    AND (PDI(14)-MDI(14))>0
    AND Mov(V,21,E)>500000
    AND ROC(V,5,%)>0
    AND MACD()>Mov(MACD(),9,E)
    AND ROC(MACD()-Mov(MACD(),9,E),3,%)>0
    AND ROC(Mov(Mo(12),21,E),3,%)>0
    AND RSquared(C,10)>0.6
    AND Stoch(5,3)>Mov(Stoch(5,3),3,E)
    AND ROC(Mov(RSI(13),13,E),9,%)>0
    AND Year()=Fml("varSetYear")
    AND Month()>=Fml("varSetMonth")

    For those not familiar with the MetaStock language, it reads:

    Show me all those stocks which have traded this month which meet the following criteria, and

    Closing price greater than the 21 day exponential moving average, and

    Wilder's Directional movement system used in the normal fashion, and

    Average volume of the previous 21 days in excess of 500000 weeds out a lot of smaller, less traded stocks. I am mainly interested in the more liquid stocks. Having the rate of change in the volume greater than zero means interest in this stock is increasing, and

    The classic MACD indicator is used in the standard way. The MACD histogram, however, must also be expanding, and

    I use the rate of change of the moving average of the momentum to filter some of the small rapid changes ("noise"), and

    R-Squared is an indicator of the strength of a trend. Over the last 10 days I want 60% of the change in the closing price to be "explainable" whilst accepting a moderate amount (40%) of unexplainable movement or "noise", and

    Classic Stochastic indicator used in the normal way, and

    By filtering the Relative Strength Index I take out a lot of the small fluctuations ("noise"). I am looking for the RSI to be increasing showing increasing buying activity in this stock.

    My problem:

    How do I set these parameters to "fire" earlier without creating excessive false returns?

    Shortening the MACD periods and MA periods is not the answer.

    Anyone got any ideas - or perhaps wants to discuss some better systems? Please post them.


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