System Testing Help Required

scpope

Junior member
33 0
As a means to seperate when the market is trending or moving sideways, I like Welles Wilders indicators, directional movement. In one system test I want to limit trades to trending markets and have the following buy signal

(ADX(14)>25) and (Ref(ADX(14) ,-1 )>25) and (Ref(ADX(14) ,-2 )>25) and (PDI(14)> MDI(Opt1) )

My understanding is that this should place a buy order if the last three days ADX(14) value is above 25 and the positive direction indicator is above the negative direction indicator. But, when I view the results I am getting buy trades when the ADX(14) is below 25!

Can anyone see where I'm going wrong, or is this a metastock bug!

Thanks Stephen
 

zambuck

Experienced member
1,608 102
To establish this have you tried Aroon indicator????....it indentifies the market or stock if it is in trending or ranging mode....

There are alternatives to establish the condition of market...I find that Chande's CMO and Aroon are really good...

Also refer to the Formulae writing Guide book avilable for free from a metastock user web site....

A word of caution...Syatem tester in 8.01 has bugs and will be overhauled in a big way in next release of MS..I understand it is ver 9...hopefully this will resolve the bugs..

I do not use the system tester by the way...
 

esiotrot

Active member
157 0
Hi Stephen
If I use your "signal" as an exploration in MS I only get stocks with ADX(14) > 25. (I set MDI periods to 14) Which suggests that the coding is OK.

It may be the logic in the systems tester.

What are your other trading signals? i.e. close long

BTW - you are trying to optimise for the periods of the minus directional movement - any particular reason?

I use v7.02 so in Sysytem Tester I cannot test multiple stocks as v8 will. Which stock is giving a spurious result?
 
 
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