Example of a trading system

Module "Advanced Technical Analysis"

The aim of the trading system is to combine the two indicators GD and momentum. The aim is to eliminate a typical weakness of momentum: the frequently delayed generation of signals when the 100 line is used as a signal generator. The trading system should be optimized accordingly to find the optimal settings for the GD and momentum.

1. Select the signal control under which the trading system is to be inserted; optionally, you can also create a new signal control in the Explorer. You can also create the trading system under a "normal" folder.
2. Right-click on the signal control and select the command NEW, TRADING SYSTEM in the context menu.
3. Assign a name in the "Trading system properties" dialog box that appears and close the dialog box with "OK".
   The workspace with the trading system properties editor is displayed.
   

   

   
   You should leave the "Message at end of evaluation" checkbox activated, as otherwise you will not receive a message when the evaluation has ended.
   "Signals until" specifies the day until which the signals are to be calculated. If you leave the field empty, the signals are calculated up to the current day (computer date).
   The "Signal period" specifies the number of days for which the system should calculate retrospectively. For example, enter 150 (trading days) here.
   The "Labeling scheme" determines the name of the signal system in the chart display.
4. Use the "Formula" button to enter the formula in the formula editor; this is the heart of the trading system.
   

   $Close:=Close;
$MOM:=$Close.MOM[$MOMPeriod;$MOMGDPeriod].RegressionSlope[$Period];
$GD:=$Close.GD[$GDPeriod];

   Trading System[$Close;
$Close.GreaterAll[$GD; $Comparison_period; $Tolerance]
and $MOM.GreaterAll[$Center_line; $Comparison_period;
$Tolerance];
$Close.LessAll[$GD; $Compare_period; $Tolerance]
and $MOM.LessAll[$Midpoint_line; $Compare_period; $Tolerance];
_;
_;
2;
$Include_short_sales;
$Expenses;
$LossLimit]

   Detailed explanations of the structure of this MM-Talk formula and how to work with MM-Talk can be found in the MM-Talk reference in the section Application examples.

   

5. Assign the variables and change the default values if necessary.
   All variables specified in your formula are assigned default values by the system, but you usually want to change these defaults for some values and thus use your own defaults.
6. You can access the "Settings" dialog box by clicking on the "Enter parameter values" icon at the top right of the formula editor.
   Make your changes. The changes are made in the same way as in all other parameter dialogs in the Infront Portfolio Manager.
   

   

   
   The settings made here are used if you display trading systems in the chart for values that have not been optimized or the values have not been optimized.

Working through the example will give you a good first insight into the MM-Talk formula language. However, to be able to work really effectively with the formula language, you should familiarize yourself intensively with MM-Talk. Then you will also be able to define and optimize your own formulas.