Metastock Expert advisor as a learning aid.

sh50

Active Member
#1
Somebody recommended the system Rex Takasugi in metastock to me. It works quite well in tandem with ADX and MACD histogram. Traderji, is this a good way to learn. If so, can you recommend any expert adviser in metastock ( The one with the commentary). I understand that a majority of systems do not work well in all circumstances but even if they work in most, it is worth it. Somebody else recommended Long Momentum Martin pring. I know that one has to discover for oneself to suit ones temperament but can you still recommend any in metastock?
 

Traderji

Super Moderator
#2
MetaStock System Tester is the way to go!

The surest way to increase your confidence in a trading system is to test it historically.

I would suggest you to use MetaStocks Enhanced System Tester because it is comprehensive flexible customizable.youll get the analyses you want because you can test exactly what you want with amazing accuracy.

Test out the trading system over enough data so that it at least covers one bull market one bear market and one sideways market.
 

sh50

Active Member
#3
I tried to do as you suggested. The system tester can confuse as much as the sharemarket. Commonsense says that one can try and run one system on all scrips(in ones portfolio for instance or in Nifty) and then decide which system is the most profitable or still better all the sytems on one scrip to know which is better for that scrip.

Then when the following comes on pressing view- how is one to interpret. Can you give a broad overview pertaining to the Indian maket- I know you cant explain each in detail. Basically what all should one see in all this- this is overinformation

Summary ,Orders, position, Equity, system

If you could give one example(one system) of how to do this historical testing-step by step giving taking any one system(momentum for instance) that should do. Thanks

This may sound silly but the only historical testing I have done is directly through the charts. One can probably do it better as you suggested. Just one example is enough.
 

Traderji

Super Moderator
#4
What is important to see is the Performance

Performance
Profit - How much money this stock earned when traded with the selected system. If this is a negative number, it indicates a loss.

Performance - A percentage measure of how much profit or loss the system generated based on its initial equity. For example, if you start with $1000 and you end up with $1100 performance is 10%.

Annualized Performance - Calculates what the Performance described above would be if the simulation took one year. This value is reached by dividing a year (365 days) by the number of days in the simulation, then multiplying that number times and the performance.

Buy & Hold Profit - The profit resulting from a buy and hold strategy. A buy and hold strategy assumes that you buy on the first day loaded in the chart and hold the position. The profit is calculated by using the price on the first day and the price on the last day. Entry commissions are taken into account.

Buy & Hold Performance - The percentage difference between the initial equity and the final equity if you were to buy the first bar and sell the last. It's just like Buy & Hold Profit (described above), but it's expressed as a percentage.

Buy & Hold Annualized Performance - Shows how much the system would have made or lost if they bought on the first day of the year and sold on the last day of the year. *

Reward/Risk Index - This index compares risk to reward. In this index, risk is defined as the System Open Drawdown (i.e., the lowest point of the equity line below the initial investment). Reward is defined as the Total Net Profits (i.e., the final point on the equity line).

Trade Summary

Total Trades - The total number of trades that were generated by the test.
This number only shows closed trades and does not include the open position that may have existed at the end of the test. Therefore, it is possible for this value to be zero if there was a single unclosed trade in the test.

Trade Efficiency - Your average total trade efficiency. Trade efficiency is the percent of the potential profit your trades realized, and is explained in more detail below.

Profitable Trades
Shows you how many profitable trades you had, and how many were longs and how many were shorts. Also lists your profitable trades' average profit, highest profit, lowest profit and longest consecutive run.

Unprofitable Trades
Shows you how many unprofitable trades you had, and how many were longs and how many were shorts. Also lists your unprofitable trades' average loss, highest loss, lowest loss, and longest consecutive run.


Index Reward Risk
+100 High None
+50 Medium Medium
0 None None
-50 Low Medium
-100 Very Low High
 

sh50

Active Member
#5
Thanks a lot. I presume that the above is all one needs to see. Now historical testing of any one system of your choice. Just one example-what exactly needs to be done. Thanks. Will get back on the above later.
 

sh50

Active Member
#7
I tried as you suggested. I tried all the scrips on NSE but they were all showing the same profit for some reason. Even with the Sensex

Then I tried the RSI and Stochastics on a few scrips. In the results, systems analyzed appeared on top. Here there were only two systems but I suppose you choose the one with the highest average net profit or best profit. . Then there was a screen optimization results which I didnt fully understand.. I clicked the one with the maximum total profit. There I got the optimization results in detail scripwise and I selected the one with the highest net profit and plotted it on a a graph. I suppose than you see the main graph with the indicators plotted above and observe how the indicators fluctuate with the various crests and troughs(over the last two years) and figure out whether they have been predictive enough. Is that how you do backtesting on the systems tester?

I even read up the manual once again but there again, there is too much information. Common sense says that the annualized trading profit should be greater than the annualized buy and hold profit.

Secondly how does one get the buy and sell arrows on the screen. There is some P and Y which appears. I tried through the options menu but was not successful.


Is this the way to go about it? Please correct me if I am wrong somewhere. Just need a broad guideline with a little detail rather. Further details we shall tackle later on.
 

sh50

Active Member
#8
I have mangaged to figure out optimization but when I try several systems on any one scrip apart from Nifty, why does profit in every scrip come out the same? I have strictly gone by manual instructions but still having problems. Kindly advice.
 
Last edited:

Traderji

Super Moderator
#9
sh50 said:
I have mangaged to figure out optimization but when I try several systems on any one scrip apart from Nifty, why does profit in every scrip come out the same? I have strictly gone by manual instructions but still having problems. Kindly advice.
You are not doing someting correctly. maybe you should try again.
 
#10
Please anybody help me? I have exported indicators' formulas and zipped. I want to self-extract this file without importing by opening in formula organiser.
 

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