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Pathfinder Trading System
MetaStock Trading System
To recreate the Pathfinder currency trading system (described in
the October 1996 interview with Nelson Freeburg) in MetaStock for
Windows, open two charts, one of the desired currency and the other
of Treasury bonds. For this example, I used the Swiss Franc. Choose
Tile from the Window menu so both charts are visible. Drag the
T-bonds price bar and drop it on the heading of the currency chart.
Your currency chart should now have T-bonds plotted in the top inner
window of the chart. Click on the T-bonds plot in the currency chart
so it's selected (that is, little squares appear on the price bars).
You will need to select the T-bonds plot each time before running a
system test. The selected plot tells the MetaStock System Tester
what to use for "P". Next, choose System Tester from the Tools menu,
and then New to create a new system. Enter the following system
rules, stops, and options and then run the test.
| Signal Formulas |
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Enter Long:
Mov(C,6,S) > Ref(Mov(C,6,S),-1) AND
Mov(P,3,S) > Mov(P,25,S) AND
Alert(Cross(Mov(C,9,S),Mov(C,18,S)),10) |
Close Long
Cross(Mov(C,18,S),Mov(C,9,S)) |
Enter Short
Mov(C,6,S) < Ref(Mov(C,6,S),-1) AND
Mov(P,3,S) < Mov(P,25,S) AND
Alert(Cross(Mov(C,18,S),Mov(C,9,S)),10) |
Close Short
Cross(Mov(C,9,S),Mov(C,18,S)) |
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| Stops |
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Maximum Loss Stop:
Long and short positions
Maximum loss of 0.016 points. |
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- Initial equity Points Only
- Positions: Long and short
- Trade price: Open
- Trade delay: 1
Note that the maximum stop loss amount should be changed to
0.032 for the British Pound and 0.02 for the Australian and
Canadian dollars when testing these contracts.
-- Allan J. McNichol, Equis International
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