Re: MAJOR FLAW in SYSTEM TESTER

["Lionel Issen" <lissen@xxxxxxxxxxxxxx>]

There are several flaws in the system tester.This 
has been discussed here, but Equis wont/can't correct the problems.
Lionel Issen<A 
href="mailto:lissen@xxxxxxxxxxxxxx";>lissen@xxxxxxxxxxxxxx
<BLOCKQUOTE dir=ltr 
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  neo 
  To: <A title=metastock@xxxxxxxxxxxxx 
  href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx 
  Sent: Friday, June 29, 2001 1:14 PM
  Subject: MAJOR FLAW in SYSTEM 
TESTER
  
  
  I 
  called MetaStock support today because I was curious about some odd results 
  with the System Tester (ST). I then tested it myself to verify it. 
  THERE  IS A MAJOR FLAW IN THE SYSTEM TESTER.
  <SPAN 
  class=200402316-29062001> 
  If 
  one places a close long and a close short position and both the close and the 
  entry in the opposite direction are hit on that day, the position will be 
  closed but THE OPPOSITE POSITION WILL NOT BE ENTERED. It is even worse if you 
  choose to close on open the following day. The opposite signal will not be 
  allowed to trigger until the following day.
  <SPAN 
  class=200402316-29062001> 
  To 
  test this I used the following simple system:
  <SPAN 
  class=200402316-29062001>Enter Long: Cross(Mov(C ,3 ,S ), Mov(C ,18 ,S ) 
  )
  <SPAN 
  class=200402316-29062001>Close Long: Cross(Mov(C ,18 ,S ), Mov(C ,3 ,S ) 
  )
  <SPAN 
  class=200402316-29062001>Enter Short: Cross(Mov(C ,18 ,S ), Mov(C ,3 ,S ) 
  )
  <SPAN 
  class=200402316-29062001>Close Short: Cross(Mov(C ,3 ,S ), Mov(C ,18 ,S ) 
  )
  <SPAN 
  class=200402316-29062001> 
  <SPAN 
  class=200402316-29062001>Because the Enter Long & Close Short as well as 
  the Enter Short & Close Long are identical, one would expect to show 
  at every point both a closing of one position and an opening of the other. 
  This does not happen!
  <SPAN 
  class=200402316-29062001> 
  The 
  same is true for Experts. If both a Close and an Enter are triggered on the 
  same day, only 1 symbol will be displayed. They are displayed in order from 
  top down.
  <SPAN 
  class=200402316-29062001> 
  I 
  suggest two actions. First, copy the message above and send it to 
  MetaStock Feedback at:
  <SPAN 
  class=200402316-29062001> 
  <A 
  href="mailto:suggestions@xxxxxxxxx";>suggestions@xxxxxxxxx
  <SPAN 
  class=200402316-29062001> 
  <SPAN 
  class=200402316-29062001>Second, until this is fixed, test only longs or 
  shorts by themselves unless you are using a reversal system where you are not 
  using Close.
  <SPAN 
  class=200402316-29062001> 
  <SPAN 
  class=200402316-29062001>Below is information from the MetaStock Help 
  file.
  <SPAN 
  class=200402316-29062001> 
  <SPAN 
  class=200402316-29062001>neo
  <SPAN 
  class=200402316-29062001>________________________________
  <SPAN 
  class=200402316-29062001> 
  This 
  is the page in MetaStock help file:
   
  The System Editor 
  Dialog
   
  The System Editor dialog lets you 
  name the system test, store notes regarding the system, and define the four 
  trading rules.The trading rules use the formula syntax explained in the 
  MetaStock formula language section (see What is the MetaStock Formula 
  Language?).  This syntax is very similar to the syntax used to enter 
  formulas in spreadsheets.  Each trading rule may contain up to 1024 
  characters.   If you are unfamiliar with the MetaStock formula 
  language, you should see  What is the MetaStock Formula 
  Language?.
   
  Remember that a trading system can 
  be in one of three different states:  long, short, or out.
   
  When out, simple interest is earned 
  at the rate specified in the System Testing Options dialog (see System Testing 
  Options).You use the four tabs to select which rule to display and 
  edit.
  Enter Long.  This rule 
  specifies when the system should buy long.  A long position can only be 
  entered when the system is short or out.  When in a long position, this 
  rule is ignored.
   
  Close Long.  This rule 
  specifies when the system should close a long position.  When in a short 
  or out position, this rule is ignored.<FONT face=Arial 
  color=#008080 size=4>
  Enter Short.  This rule specifies when the system should sell 
  short.  A short position can only be entered when the system is long or 
  out.  When in a short position, this rule is ignored.
  Close Short.  This rule specifies when the system should cover 
  (i.e., close) a short position.  When in a long or out position, this 
  rule is ignored.