Question: When stops are coded afl instead of setup under settings, do they
disregard the system settings for Buy Price and Buy Delay? Currently, I have
the latter set to Buy Price = Close+1 Day Buy Delay. For a new strategy I am
working on, I notice that during live testing something doesn't jive. Here is
an example...
Note: I always use EOD data and CLOSE +1, to get "tradable" signals for mutual
funds and indices:
Monday Night: Formula gave buy signal for Emerging Markets after the close.
With CLOSE+1 Day delay, that would mean buy at Tuesday's Close.
Tuesday Night: Max Loss Stop is triggered because of a -3.5% drop in the
Emerging Markets on Tuesday.
Wednesday at the close, mutual fund is sold.
Question: How could a Max Loss Stop be triggered if that fund wasn't purchased
until AFTER Tuesday's big drop? Since it was purchased AFTER the drop, there
was no loss of -3.5% going into Wednesday.
Here is an example of a typical mutual fund compatible coded stop:
ApplyStop(stopTypeLoss,
stopModePercent,
Optimize( "max. loss stop level", 2, 2, 10, 2 ),
False );
Do I have to code something else to make sure the STOP is triggered based on
the CLOSE+1 purchase price and NOT the BUY SIGNAL Price? Or, do I need to code
the Buys and Sells inside the formula as CLOSE+1 instead of relying on system
settings? OR, none of the above?
Thanks in advance for your help, as usual!
Steve.
