1. Most Discussed
  2. Gainers & Losers

MetaStock "systems"

  1. bellamy

    48 Posts.

    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.


    This search is not a recommendation to buy or sell, but rather a method for indentifying stocks based on some specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. I accept no liability whatsoever for any loss arising from any use of this search or its contents. Always seek your own independent financial advice before making any trade.

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.