Trouble interpreting an exit strategy

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Trouble interpreting an exit strategy

Postby marco » Wed Mar 11, 2015 2:06 pm

Pete,

I'm running a one-click search which returns the following entry and exit

entry: cci(10) < 140
exit: crossbelow(ref(cci(10),-1),140)

I have no trouble understanding the entry. The exit however I would interpret as :

cci(10) crossed below 140 yesterday

This cannot be right as this is also my entry. Can you elaborate?
marco
 
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Joined: Mon May 27, 2013 6:15 pm

Re: Trouble interpreting an exit strategy

Postby Overload » Wed Mar 11, 2015 2:50 pm

Technically the entry would be this:

Enter if the cci(10) is below 140.

This is different than "crosses below" 140. It is an important distinction because there may be times when a symbol becomes available for entry, and the cci(10) happens to be below 140 but did not just cross below that line. Without using the "crosses below" rule, the cci(10) can simply be at any level below it for the rule to be true.

Your interpretation of the exit is correct. If yesterday's cci(10) crossed below 140, an exit will be triggered. As mentioned, there may be cases where a trade was entered because the cci(10) was below 140 even though it did not "cross below" 140. In these cases, the cci(10) would need to rise above 140 and then drop back below it for the exit to trigger. Or, there may be cases where the cci(10) crossed below 140 to trigger the entry, which would then automatically trigger an exit after holding for just 1 day.

If your OneClick Search found that system, then it may have some value. I don't see anything technically wrong with the rules, although I agree it's a little odd. I looked around at the default trading rules that come with StrataSearch, and it does not look like either your entry or exit rules came with the StrataSearch installation. So you may have created or imported them at some point. You might look at their descriptions to try to identify where they came from, and that might help you figure out why they were created like this.

Pete
Overload
 
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