Charlie Wright Volatility code - Is it right?

Discussion in 'Technical Analysis' started by alwayslearning, Sep 2, 2005.

  1. Hi,
    I am new to TradeStateion so please forgive me if I am barking up the wrong tree.

    The code described at http://www.elitetrader.com/tr/index.cfm?s=17&t=74&p=5 (I must compliment Charlie on this e-book as it's fantastic for us newbees) seem a bit strange. In the long strategy why does the code after the "or" exist? Isn't this the same criteria as for the short trade? Similarly the code after the "or" in the short trade seems to be the same code as for opening a long position. I have surrounded the code I am questioning in "quotes" below. Would appreciate your comments.

    IF Open of next bar > High of this
    bar or "Open of next bar < Low of
    this bar" then Buy next bar at
    Close of this bar + Range
    of this bar Stop;

    IF Open of next bar < Low of this
    bar or "Open of next bar > High of
    this bar" then Sell next bar at
    Close of this bar - Range
    of this bar Stop;
     
  2. The code is referencing tomorrow's data and sending the order today. This is impossible.
     
  3. Yes, they are the same, but you are forgeting here
    that, (then "action") part of these stractures are another
    type of conditions on their own that have to be met
    before orders can be triggered.
    That' means two conditions have to be true for either
    buy or sell to take place.

    May be this example can clearifies more things to you:
    Buy next bar at Close of this bar + Range of this bar Stop;
    Sell next bar at Close of this bar - Range of this bar Stop;

    They are also type of conditional orders without "if..." part
    As you can see stop condition for buy and sell are not the
    same.
     
  4. No, The code is is referencing today and tomorrow's data,
    and sending orders tommorrow on conditional stops.